KUALA LUMPUR (March 3): The Cabinet in its weekly meeting tomorrow must decide what action will be taken against 1Malaysia Development Berhad (1MDB), in light of the recent revelations on the debt-ridden, government-owned strategic investment fund, DAP said today.
DAP parliamentary leader Lim Kit Siang said the Cabinet should decide whether to establish a royal commission of inquiry (RCI) into 1MDB, or give its full support for a public inquiry headed by the Public Accounts Committee (PAC).
"Will the Cabinet meeting tomorrow hide and run from the biggest financial scandal in the country and the issue which is casting the greatest cloud and doubt on the credibility, integrity and good governance of the Malaysian prime minister and government, both nationally and internationally – the RM42 billion 1MDB scandal?" asked Lim in a statement today.
"The Cabinet tomorrow should give special focus to the 1MDB scandal, and either decide to establish a RCI headed by former Law Minister Datuk Mohd Zaid Ibrahim and other independent credible Malaysians into the 1MDB scandal or give support for a full-scale PAC inquiry into the 1MDB scandal, taking priority over all other PAC agendas."
The Gelang Patah MP said if the Cabinet decided on a PAC inquiry, it should agree to amend the Dewan Rakyat Standing Order once Parliament convenes next week, to empower the PAC to hold public hearings.
He proposed that PAC summon Claire Rewcastle-Brown, the editor of London-based website Sarawak Report, as well as the past and present chief executives and auditors of 1MDB to testify in the hearing.
Sarawak Report last weekend claimed to have obtained documents revealing that Malaysian businessman Low Taek Jho, or Jho Low, had orchestrated the 2009 joint venture between 1MDB and PetroSaudi International (PetroSaudi).
It claimed Low did this so that PetroSaudi could act as a "front" for him to siphon US$700 million (RM2.5 billion) from the deal.
Lim said today that the five Pakatan Rakyat (PR) MPs on the PAC had already called for an immediate hearing on 1MDB in the wake of Sarawak Report's allegations.
However, apart from PAC chairman Datuk Nur Jazlan Muhamad, the other Barisan Nasional (BN) members who sit on the committee have remained silent over the scandal, said Lim.
"These seven BN MPs on the PAC should resign from the PAC if they are afraid to support the PAC conducting an immediate investigation into the 1MDB scandal, and give their places in PAC to BN MPs who are not afraid of investigating into government financial scandals – even those directly affecting the prime minister," said Lim.
The seven BN MPs on the PAC are: Datuk Seri Reezal Merican (Kepala Batas), Datuk Abdul Aziz Sheikh Fadzir (Kulim Bandar Baru), Datuk Mas Ermieyati Samsudin (Masjid Tanah), Datuk Liang Teck Meng (Simpang Renggam), Datuk Madius Tangau (Tuaran), Hasbi Habibollah (Limbang) and Datuk Wee Jeck Seng (Tanjung Piai).
Misappropriate public funds
On Saturday, Prime Minister Datuk Seri Najib Razak, who is the chairman of the 1MDB advisory board, said he would never allow anyone to misappropriate public funds in the government-owned company for personal gain.
"I wish to stress here that 1MDB is a strategic investment fund owned by the Malaysian government and I will not allow anyone to use or misappropriate public funds for personal interest or gain," Najib said on the social networking site.
Meanwhile, in a response to UK newspaper The Sunday Times, which had also published the alleged link between Low and 1MDB on Sunday, the Malaysian government said Najib was not involved in the day-to-day operations of 1MDB, which it said is "run by a professional and experienced team".
On Sunday, PetroSaudi denied reports that funds from 1MDB went to third parties, adding that its subsidiaries had received the entire cash for a joint-venture company, while 1MDB confirmed that it received back its investment in full from the deal besides making a profit.
The privately-owned oil exploration and production company in a statement said that upon 1MDB's exit, PetroSaudi had paid the Malaysian strategic investment fund in full and both parties no longer had any financial or legal relations.
1MDB's audited accounts as at March 31, 2014, shows that the company received the US$2.3 billion and made a profit of US$488 million.
In a separate statement, 1MDB president and group executive director Arul Kanda Kandasamy also said the firm "notes with concern" the claims reported about its business arrangements with PetroSaudi.
"1MDB exited the relationship in 2012, and received back its investment in full, with a profit of US$488 million.
"These facts, and all details related to this transaction, may be verified by reference to our audited accounts, which are publicly available on the Suruhanjaya Syarikat Malaysia website," he said.
On February 21, Arul Kanda also said the same, in response to earlier criticism about 1MDB's joint venture with PetroSaudi.