KUALA LUMPUR, April 7 — The authorities should scrutinise the Public Accounts Committee’s (PAC) report on 1Malaysia Development Berhad (1MDB) and take the necessary legal action if any wrongdoing is found, Datuk Hasan Arifin said today.

The PAC chairman said that the committee’s findings were based on a recent report prepared by the National Audit Department, and was in line with the Cabinet’s directive for the PAC to scrutinise 1MDB’s audit report and to investigate any issues involving the firm’s management of funds.

“For this reason, PAC urges the authorities to study in detail this report and to undertake further investigations.

“If there is any wrongdoing, legal action must be taken,” Hasan said in a statement.

The PAC in its report released today urged the authorities to investigate former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi over weaknesses in the company’s management.

The report also concluded that there were certain restrictions and weaknesses in 1MDB’s management and board of directors.

According to Hasan last November, Shahrol Azral had testified on 1MDB’s links with the Terengganu Investment Authority (TIA) and Saudi-based oil exploration and services company PetroSaudi International (PSI).

The parliamentary panel said 1MDB’s board of directors were too reliant on and often accepted the management’s explanations, without exploring the matters arising in-depth.

Hasan in his statement acknowledged this and said that 1MDB was in the past overly reliant on its debts.

“PAC admits that the 1MDB company has a poor structural model and there were several management weaknesses which have been detailed in the report.

“PAC is also satisfied with 1MDB’s report on its management control, its rationalisation plan and steps taken by the government in the short term to fix the company,” Hasan explained.

1MDB is currently under probe by the authorities in several countries, with Luxembourg the latest to investigate the state investment firm for alleged money laundering.