PARLIAMENT The government has never claimed that 1MDB was a good investment, said Deputy Finance Minister Johari Abdul Ghani.

"The government has never said that,” he told the Dewan Rakyat during question-and-answer session today.

Wrong business model, weak management and poor governance were the three reasons that (contributed to) 1MDB's lack of competitiveness, he said.

"1MDB relies on loans to run such a huge business and it was unable to gain profit in the short term; this is a mismatch or a wrong business model," he said.

He added that these were highlighted in the Public Accounts Committee's (PAC) report on 1MDB.

"The government has admitted there were issues in 1MDB, and that was the reason it wanted PAC to investigate," he said.

Prime Minister Najib Abdul Razak had instructed both the National Audit Department and the PAC to probe 1MDB in March 2015.

In its report, PAC held 1MDB former CEO Shahrol Azra Ibrahim Halmi and others in the management responsible for the weaknesses and constraints of the state-owned fund.

While the final 1MDB auditor-general report was submitted to PAC early that month.

PAC chief Hasan Arifin originally claimed the audit report will be declassified after the PAC report was presented to Parliament.

The government however, claimed that the audit report was only meant for PAC consumption.

According to Johari, the government is implementing the various PAC recommendations.