Prime Minister Najib Abdul Razak and 1MDB president Arul Kanda Kandasamy have been urged to lodge reports with the authorities on Arul Kanda's claim that 1MDB may have been defrauded.

DAP's Segambut MP Lim Lip Eng said this in reference to Arul Kanda's claim that 1MDB was a victim of fraud based on the Swiss investigation.

"Najib, as the sole signatory of 1MDB funds, and Arul Kanda as chief executive officer, need to immediately lodge criminal reports with the relevant agencies, including the police, Malaysian Anti-Corruption Commission and Bank Negara if they are truly not involved in the fraud and embarrassment of the century.

"Malaysian law requires the victims of fraud to lodge a criminal report.

"If Najib and Arul Kanda do not do so, they may become suspects in the fraud," Lim said in a statement today.

1MDB in a statement on April 12 said it paid US$3.5 billion to British Virgin Islands-based Aabar Ltd but the Abu Dhabi-based International Petroleum Investment Company (IPIC), which should be the beneficiary of the funds, said Aabar Ltd is not related to it.

It is unclear what had happened to the money.

Lim noted that this development came amid the government's insistence that the Public Accounts Committee (PAC) report had cleared Najib of wrongdoing, despite highlighting that billions of ringgit were unaccounted for and that the prime minister had signed off on the company's deals.

He said pending police investigation, a travel ban should be imposed on all persons of interest.

"The entire management responsible for 1MDB, including Najib, former chief executive officer Shahrol Azral and even Arul Kanda should not be allowed to leave the country pending the investigation," he said.