This article first appeared in The Edge Financial Daily, on November 26, 2015.
KUALA LUMPUR: The Public Accounts Committee (PAC) is expected to table its report on the controversial 1Malaysia Development Bhd (1MDB) to Parliament by March 2016 at the latest, said its chairman Datuk Hasan Arifin.
In a statement yesterday, Hasan said the bipartisan committee has scheduled hearings for testimonies from a host of 1MDB past and present top executives next month, before it can start preparing a final report on the matter.
“We hope that the report on the management of governance control of 1MDB will be presented to Parliament latest by March 2016,” he said.
Hasan also said PAC will meet with former 1MDB chief executive officer (CEO) Datuk Shahrol Azral Ibrahim Halmi again on Monday, after questioning the latter for four hours earlier yesterday.
The committee took Shahrol’s statement yesterday, but Hasan said it felt more explanation was needed from Shahrol about the formation of the strategic development company, which took place in 2009 under Shahrol’s watch.
Besides Shahrol, others who were called to give their testimonies yesterday included Finance Ministry deputy secretary-general (investment) Datuk Dr Mohd Isa Mohd Hussain who represented the ministry’s secretary-general Tan Sri Mohd Irwan Serigar Abdullah, and 1MDB’s legal adviser Ivan Chen.
PAC took Shahrol’s statement regarding the company’s management and administration issues, beginning from its inception as Terengganu Investment Authority (TIA) till it was renamed as 1MDB in September 2009.
“PAC also heard Shahrol’s explanation regarding the 1MDB and PetroSaudi International Ltd joint venture. However, PAC is of the opinion that Shahrol needs to give his statements again to this committee on Monday at 10.30am,” said Hasan.
“The PAC needs to revisit a few facts, before we hear the statement from current 1MDB president and group executive director Arul Kanda Kandasamy next Tuesday at 11am,” he added.
Apart from Shahrol and Arul Kanda, the panel is scheduled to call four more individuals linked to 1MDB. They are Mohd Hazem Abdul Rahman, who was the company’s managing director and CEO from March 2013 to January this year, two former directors — Tan Sri Mohd Bakke Salleh and Tan Sri Azlan Zainol, as well as current 1MDB chairman Tan Sri Lodin Wok Kamaruddin. The hearings will run from Dec 1 to 15.
Due to the unfinished business with Shahrol, Hasan decided not to hold any press conference yesterday.
However, a PAC representative told reporters that a press conference will be scheduled on Monday after the panel’s second hearing with Shahrol.
PAC’s scheduled session with Shahrol and Arul Kanda have been postponed twice, since May this year. The duo first requested for a postponement in May, as they were overseas. They were then scheduled to appear before the panel in August, but this was postponed after PAC lost its chairman and three members, after a surprise Cabinet reshuffle.
Shahrol was 1MDB’s first CEO from February 2009 to March 2013, while Arul Kanda was appointed in January this year following Mohd Hazem’s departure.
Yesterday’s hearing was, however, the committee’s fourth hearing on the 1MDB matter.
1MDB, whose advisory board is headed by Prime Minister Datuk Seri Najib Razak, came under scrutiny after it almost defaulted on a loan and clouded the sovereign’s credit rating. Since 2009, it has accumulated debts totalling RM42 billion.