Auditor-General Ambrin Buang said he has the authority, given by Prime Minister Najib Abdul Razak in 2012, to classify documents under the Official Secrets Act.

This included the final audit report on 1MDB to the Public Accounts Committee (PAC), which was submitted in March.

Ambrin was testifying at the Sessions Court in Kuala Lumpur today, in the criminal trial involving Pandan MP Rafizi Ramli, who was charged under the Official Secrets Act.

The auditor-general said there were fears the full report on 1MDB could be leaked, following the information leak of the 1MDB interim report.

“We sought the advice of the Security Department which advised us to make the final 1MDB report a classified document.

"This was to ensure that the PAC could go on with its proceedings without any outside interruption and safeguard the integrity of the National Audit Department itself.

“We followed the advice and the procedure to implement the classification of the document,” he said.

When asked by DPP Mohd Abazafree Mohd Abbas who had classified the document, Ambrin said he had been given the authority under the Official Secrets Act.

DPP: Who gave you the authority?

Ambrin: The power was given by the prime minister in Jan 2012, where the certificate under Section 2B of the OSA was given. Accordingly, the final audit report on 1MDB is listed as an official secret, and it is registered with the registrar of OSA.

'PAC says no need to declassify'

He said the final 1MDB audit report remains classified because the PAC had decided not to include the report when it tabled its findings in Parliament.

“As it was decided by the PAC that there is not a need to declassify, I did not make any attempt to reclassify it,” he said.

Section 2B of the OSA states a minister, the menteri besar or the chief minister of a state may appoint any public officer by a certificate under his hand, to classify any official document, information or material as 'Top Secret', 'Secret', 'Confidential' or 'Restricted', as the case may be.

The full 1MDB audit report was tabled to the PAC on March 2016, while the interim report, which was classed as 'restricted', was made in July 2015.

Ambrin said the Audit Department met and testified with the PAC approximately 10 times after it submitted the final audit report.

He added that the audit on 1MDB was done on the cabinet's instructions on March 2015. Prior to that, the PAC had requested that it investigate certain aspects of 1MDB's management, he said.

“Hence, for the purpose of this audit it is done simultaneously and the report was handed to the PAC. That is what is done by the Audit Department,” he said.

'Finl audit report already leaked'

Ambrin also told the court that the department's deputy director, Nor Salwani Muhammad, informed him that the final audit report may have been leaked.

“One day Nor Salwani informed that the final report could have been leaked. I compared the documents given by Nor Salwani to the original copy which is in my possession. I am convinced there has been a leak and I instructed Nor Salwani to make a police report.

“Nor Salwani obtained a copy of the document from a blog entry and also on someone's Facebook. I discussed this leak with my officers who are in agreement on the possibility of a leak. The leak in question is on page 98 of the final 1MDB report,” he said.

He said investigating officer Supt R Rajagopal recorded his statement after the police report was lodged.

The hearing before Sessions judge Zulqarnain Hassan continues tomorrow.