KUALA LUMPUR: 1Malaysia Development Bhd’s (1MDB) Memorandum and Articles of Association (M&A) suggests that Prime Minister Datuk Seri Najib Razak is a key decision-maker in the company, according to opposition lawmaker Rafizi Ramli.
PKR vice-president Rafizi said clause 117 of 1MDB’s M&A links Najib to investment decisions, and debt, of the government’s wholly-owned entity. 1MDB invests in real estate and electricity-generation projects.
Najib, who is also the finance minister, is chairman of 1MDB’s board of advisors.
Rafizi said: “Article 117 clearly connects the prime minister to all the most important decisions of 1MDB. It is (also) clear that any financial decisions, including investments that may affect the guarantee given by the federal government, would need the express approval of the prime minister.”
Rafizi was speaking to reporters at the parliament lobby yesterday.
Rafizi said the revelation of article 117 means the prime minister was directly involved in important transactions by 1MDB.
Rafizi said the M&A was adopted at 1MDB’s extraordinary general meeting on Aug 11, 2009. Najib became the country’s sixth prime minister on April 3, 2009.
Yesterday, Rafizi said he would raise questions in the next Parliament sitting on whether 1MDB’s board had obtained express written approval from Najib for loans and bonds undertaken by the company for its investments.
According to 1MDB’s website, the company’s real estate projects here comprise the Tun Razak Exchange and Bandar Malaysia.
1MDB’s electricity-generation portfolio comprises Powertek Energy Sdn Bhd, besides its 75% stake each in Kuala Langat Power Plant Sdn Bhd and Jimah Energy Ventures Sdn Bhd.
This article first appeared in The Edge Financial Daily, on May 28, 2015.