KUALA LUMPUR (May 26): Opposition legislator Tony Pua asked today if Bank Negara Malaysia has commenced investigations on the more than US$1 billion (RM4.1 billion) allegedly deposited into Prime Minister Datuk Seri Najib Razak's personal account, for possible money laundering.
Pua said that despite being arguably the most "aggressive" regulatory agency to investigate troubled state fund 1Malaysia Development Bhd (1MDB) in Malaysia, the central bank "barely scratched the surface of the entire scandal".
Citing recent action by Switzerland's Office of the Attorney General (OAG) and the Monetary Authority of Singapore (MAS) on the BSI Bank, Pua questioned: "What has Bank Negara done to protect the integrity of our financial system?"
"Despite the fact that Malaysia is being ridiculed globally and cited as an example of a rogue state run by kleptocrats, Bank Negara has barely bared its purportedly powerful fangs to indict those who have been responsible," he added at a news conference at the Parliament lobby.
Pua said Bank Negara had made a hue and cry over how 1MDB illegally transferred US$1.83 billion overseas, and the demands for 1MDB return the funds immediately.
"But it all ended with a whimper when Bank Negara agreed to close the chapter by slapping 1MDB on the wrist with a compound. 1MDB proudly issued a statement that it has paid the fine yesterday.
"To rub salt on Malaysians' wounds, the quantum of the fine was undisclosed, so it could be a pitiful RM4,000 for all we know," he added.
The Petaling Jaya Utara MP accused the central bank of blemishing its reputation and bringing shame to the country, saying it has allowed itself to be used by the alleged money-laundering suspects to acquit themselves.
Pua noted that Department of Special Affairs (Jasa) director-general and UMNO leader Datuk Mohd Puad Zarkashi, when explaining Najib's "donation" scandal, told students in Australia that the prime minister had discussed the matter with the then Bank Negara governor Tan Sri Dr Zeti Akthar Aziz and even received the central bank's approval to bring in the money.
Najib has been accused of receiving more than US$1 billion in his personal account with AmBank Bhd, which he has not denied. The attorney-general has cleared him from any wrongdoing.
"Hence the question for Bank Negara is: Did Datuk Seri Najib Razak indeed obtain approval from Bank Negara and has the information on the source of funds been diligently verified since it has brought disrepute to the country?" Pua asked.
Pua said fellow DAP parliamentarian Lim Lip Eng has submitted a letter on Aug 5, 2015 asking the central bank to clarify if the transaction complied with the Anti-Money Laundering and Anti-Terrorism Financing Act 2013 (AMLA).
He noted that Najib and other Umno leaders have insisted that the "incredibly large sums" the prime minister received were "donations" from an unnamed Middle-Eastern individual.
"However, that excuse, even if it were unbelievably true, does not absolve the prime minster from the purview of AMLA. That is because even a 'donation' could have originated from illegal and illicit sources via complex money-laundering mechanisms.
"Bank Negara Malaysia, as the 'competent authority' under the AMLA, must confirm if the prime minister has been investigated under the law and if he has been cleared. Silence from Bank Negara is not an option.
"The failure to investigate or confirm the above would only mean that the central bank has abdicated its powers and severely neglected its responsibility to protect the integrity of our financial system, especially when compared to the actions of foreign central banks to date," said Pua.