Deputy Prime Minister Muhyiddin Yassin today urged the Public Accounts Committee to start its own investigation on 1Malaysia Development Bhd, without waiting for the auditor-general’s report.

He also frowned on any plans to sell off Tun Razak Exchange and Bandar Malaysia land, which he said will be a "loss" for the government.

Muhyiddin's call is in contrast with Prime Minister Najib Abdul Razak who said the PAC can scrutinise the audit report after the auditor-general has finished the audit.

"Because the allegations against 1MDB involves complex corporate transactions to do with national and government interests, the auditor-general must be given support in terms of expertise so he can complete a comprehensive report in a timely manner…

"A forensic audit must be conducted to ensure there is no corruption in 1MDB’s transactions.

"At the same time, the PAC can also start its own investigation without waiting for the audit report to be completed,” he said in a statement.

In a strongly-worded statement, Muhyiddin said there should be no strip sale of the firm's assets to pay off its hefty debts, amounting to RM42 billion.

"The government will suffer a loss if restructuring of 1MDB involves sales of Tun Razak Exchange and Bandar Malaysia land.

"The land banks were obtained from the government on the cheap," he said.

1MDB in its strategic review said it will split some of its debt into its smaller entities, but Reuters reported yesterday that it will go a step further by dissolving the firm after the exercise.

In response, 1MDB said there is no reason to wind down the firm.

No public bail out

Whatever the outcome, Muhyiddin said 1MDB's board of directors must now explain why their businesses are not generating enough cash flow.

"I stress that any effort to deal with the 1MDB issue will not involve a public bailout," he said.

The management must take all allegations including those on social media seriously, Muhyiddin said, and take legal action against defamatory claims.

On Wednesday, the Prime Minister's Office said the cabinet cleared 1MDB of wrongdoing after getting a briefing from the Finance Ministry-owned firm.

Najib, who is also finance minister and 1MDB board of advisors chairperson, vowed that anyone found to have breached the law will be brought to justice.

Najib said this after instructing the auditor-general to conduct an audit of 1MDB.

If any wrongdoing is proven, the law will be enforced without exception - PM @najibrazak on 1MDB

— Msia PM Press Office (@PMOMalaysia) March 4, 2015

1MDB is under fire after an expose alleging it banked in US$700 million to a company controlled by Najib family-linked tycoon Jho Low.

The transaction was part of a now defunct 2009 joint venture with oil firm PetroSaudi International, but PetroSaudi denies funds went to Low.

Low's publicist did not respond.