KUALA LUMPUR, May 8 — The decision to use the Official Secrets Act (OSA) to investigate leaked documents from a land deal involving 1 Malaysia Development Bhd (1MDB) and Lembaga Tabung Haji illustrates how the law is abused to hide corruption, Transparency-International Malaysia said today.

Criticising the decision to probe an anonymous blog for leaking documents of an alleged transaction worth nearly RM800 million between 1MDB and LTH, the anti-graft watchdog said the whistleblower should be protected rather than threatened using the OSA.

“This episode also serves to show how the Official Secrets Act (OSA) can be misused for the wrong reasons,” TI-M president Datuk Akhbar Satar said in a statement.

“Instead, priority should be given to investigate whether any irregularities occurred in the business transactions, if the purchase was made according to standard procedure and if the price paid by LTH was reasonable and fair value.”

He warned that a lack of openness involving funds from the board that manages Muslims’ savings for their Hajj would create vulnerability to corruption, as opaque dealings create “extremely lucrative opportunities of self-enrichment”.

Today, Inspector-General of Police Tan Sri Khalid Abu Bakar announced that the report lodged against anonymous blog “The Benchmark” by LTH chief executive Datuk Johan Abdullah will be investigated under the OSA.

He did not explain why the leaked documents were classified under the Act.

On Wednesday, “The Benchmark” published documents that showed LTH was buying two parcels of land from 1MDB, purportedly for nearly RM800 million.

LTH chairman Datuk Seri Abdul Azeez Abdul Rahim immediately denied this, before LTH confirmed the deal next day albeit for one parcel at RM188 million instead of two as initially believed based on the leaked documents.

The confirmation has prompted bipartisan calls from lawmakers and private groups for LTH to explain the “high-risk” transaction.

The Tun Razak Exchange, planned as a 70-acre financial centre within the capital, is one of two high-profile property projects in 1MDB’s portfolio.

1MDB is currently under investigation by the Auditor General’s Department and Parliament’s Public Accounts Committee.