1Malaysia Development Berhad1Malaysia Development Berhad(1MDB) is a strategic development company, wholly owned by the Government of Malaysia.1MDB was established to drive strategic initiatives for long-term economic development for the country by forging global partnerships and promotingforeign direct investment. 1MDB is currently involved several high-profile projects such as the Tun Razak Exchange, Tun Razak Exchanges sister project Bandar Malaysia and the acquisition of three Independent Power Producers.1MDBs controversies have drawn concerns from various parties, especially on the overall financial stature of the country and the ongoing effect it will have on the Ringgit as only RM20 billion of the debt is backed by the Government. Some economists are debating whether this debt contributes to the weakening Ringgit, apart from the fall in global oil prices. A falling Bursa Malaysia and concerns about the rise in the cost of living just worsens the perception that 1MDB is yet another cause of woe. However, the actual relationship between both isnt very clear.Also, civil servants may need to heed the controversies surrounding 1MDB as one of its subsidiaries has not been able to service a RM4 billion loan taken from Kumpulan Wang Amanah Pencen (KWAP) which pays government pensions. Putrajaya is being forced to service this debt through whatever means it needs to take.Fortunately, IMDB re-evaluate the business model andstructure. Three important strategic steps have been taken to address the current issues. These included halting new borrowings except to service or refinance current debts; and not to embark on new projects or ventures but to focus on the two main projects-Tun Razak Exchange (TRX) and Bandar Malaysia; and also ensure the initial public offering of IPP Edra Energy can take place soon.

Audit that would be performed by the Auditor GeneralMr Najib, a reformist technocrat who leads the moderate Muslim Southeast Asian nation of 30m people, had ordered the auditor-general to independently verify the accounts of 1 Malaysia Development Berhad, or 1MDB. Prime minister had called 1MDB and its auditors, Deloitte, before the cabinet. Deloitte had provided an overview of its engagement with 1MDB and confirmed that the firm had audited and verified the companys accounts and having received clarifications from 1MDB and Deloitte, cabinet expressed confidence that no wrongdoing has been committed within 1MDB.The department should be able to carry out a forensic audit based on a longer period. If there are discrepancies in the statement, the management and board of directors will be held accountable and may face court action. Forensic audit is an evaluation of a firm's or individual's financial information as evidence in court. It can be done in order to prosecute a party for fraud, embezzlement or financial claims.Besides that, department would give priority to undertaking the audit of the government-owned strategic development company in an independent and professional manner, gather relevant information and was scrutinizing all documents as well as interviewing the relevant people. The audit would involve calling up all quarters, including those who made the allegations, the former 1MDB CEO and Prime Minister Datuk Seri Najib Tun Razak himself, if this was necessary to aid the audit.Moreover, auditing process would not only be confined to the accounts of 1MDB but also include the assets, liabilities, corporate governance and equities. This is the way to know how the company is being managed. Also, PAC has full powers under Standing Orders 77 to examine the 1MDB accounts for an immediate investigation into the 1MDB accounts.All in all, the heat on 1MDB will continue to grow especially with media pressure. Auditor General should try to review 1MDB business transactions from the year 2009 to current year. Auditor General have to ensure the independent of audit report during the preparation among auditors involved to show true and fair view of the report. It can be said that at the end of the day, the Auditor-Generals task at unraveling 1MDBs books is not an easy one.