KUALA LUMPUR, July 14 — No signs of misconduct were detected by the Auditor-General (A-G) during the preparation of the interim report on 1Malaysia Development Bhd (1MDB), Finance Minister II Datuk Seri Ahmad Husni Hanadzlah said today.

Citing the findings of the confidential report, the minister called for an end to “baseless allegations” against the state-owned firm that that have been used to attack Prime Minister Datuk Seri Najib Razak and demand for his resignation.

“The preliminary report by the Auditor-General investigating 1MDB’s activities has found no evidence of wrongdoing, and therefore the reckless allegations by some parties including the ‘disappearance’ of RM42 billion and transfer of US$700 million to certain individual does not arise.

“It is my hope that all baseless allegations will be put to rest.  We have to remain patient and we look forward to the final report by A-G and the Public Account Committee (PAC),” he said in a statement.

Auditor-General (A-G) Tan Sri Ambrin Buang submitted the 70-page interim report to Parliament’s Public Accounts Committee (PAC) last week to facilitate the watchdog’s own investigation into 1MDB.

The PAC said then, however, that the interim report did not cover the allegation published last month by the Wall Street Journal that US$700 million (RM2.6 billion) from 1MDB’s funds ended up in Najib’s personal bank accounts.

According to PAC chairman Datuk Nur Jazlan Mohamed then, 1MDB did not co-operate fully with the A-G, and failed to avail every document requested by the federal auditors probing the firm’s finances.

He also said the interim report would not be made public as its findings will be incorporated into the PAC’s own investigation.

Today, Husni who is also the Tambun MP, said the government is now focusing on the rationalisation plan to resolve issues pertaining to 1MDB's debt.

“The definitive aim of the rationalisation plan is to rebalance 1MDB’s asset and debt in order to support its financial structure that will ensure its sustainability going forward,” he said.

The A-G and PAC’s investigations of 1MDB’s accounts was ordered by Najib on March 4, after The Sunday Times from the UK, in collaboration with whistleblower site Sarawak Report, ran an exposé alleging impropriety in the firm’s venture with oil exploration and production firm PetroSaudi International.

The final A-G report on 1MDB is only expected to be ready by the end of the year.

A special task force has also been formed to investigate 1MDB, comprising the Attorney-General’s Chambers, Bank Negara Malaysia, the Royal Malaysian Police and the Malaysian Anti Corruption Commission.

Former prime minister Tun Dr Mahathir Mohamad has made allegations against 1MDB as the cornerstone of his campaign to remove Najib from office, and has variously claimed that the firm’s funds have gone “missing”, “vanished” or “disappeared”.