KUALA LUMPUR (April 19): Parti Keadilan Rakyat's Selayang MP William Leong has called on the Prime Minister Datuk Seri Najib Razak, who is also the Minister of Finance, to accept responsibility for the 1Malaysia Development Bhd (1MDB) debacle and step down to restore the nation's financial credibility and standing.

The renewed call by Leong was made after the recent revelation by the International Petroleum Investment Corp (IPIC) on the London Stock Exchange that the British Virgin Islands-incorporated Aabar Investments PJS Ltd (Aabar BVI) was not related to the group and that the debt-asset swap deal between IPIC and 1MDB was now cancelled, with IPIC demanding a repayment of US$1.1 billion from 1MDB.

Leong said the announcement by IPIC clearly shows that the payment by 1MDB of US$3.5 billion to Aabar BVI involved a fraudulent misappropriation of funds, and deceit.

There is at least gross negligence in making such substantial sums of money without ensuring that the recipient is the proper party, he added.

"I call on the Prime Minister and Minister of Finance to provide a full and complete statement immediately on the circumstances relating to payments by 1MDB to Aabar Ltd amounting to US$3.5 billion, as he holds the power to make the ultimate decision on matters relating to 1MDB pursuant to Article 117 of its Articles and Association," Leong told a press conference at the Parliament lobby today.

Leong also alleged that witnesses who testified in front of the Auditor General (AG) and the Public Accounts Committee (PAC) during their probes into the Ministry of Finance (MoF)-owned 1MDB have not given the full picture of what went on at the fund, that they had withheld vital information.

"More importantly, those who have testified before the AG and the PAC have not told the truth. The IPIC announcements have further exposed those who testified before the AG and the PAC have withheld vital information and have given false and misleading evidence," Leong said.

He was referring to pages 92 and 93 of the PAC report, which stated that 1MDB has yet to show any confirmation that Aabar BVI is a subsidiary of IPIC and IPIC's unit, Aabar Investments PJS, in Abu Dhabi.

1MDB had furnished a Certificate of Incumbency that was issued by the Offshore Incorporations Ltd in Hong Kong to prove that Aabar BVI is a subsidiary of IPIC, but the National Audit Department found that Aabar BVI was not listed in the IPIC Group, based on 2013 and 2014 financial statements, according to the report.

Last week, 1MDB had issued a statement saying that it could have been a victim of fraud after IPIC and its subsidiary Aabar denied having any stakes in a British Virgin Islands company with a similar name as the IPIC subsidiary, which was referred to as Aabar BVI.

The fund however, had maintained that payments totalling US$3.5 billion was made to Aabar BVI between 2012 and 2014, and which have been clearly recorded in the fund's financial statements.

Leong, who is also a PAC member, said, "The time is up for the government and 1MDB to stop giving false and misleading information. The government and 1MDB must give full and complete account for the payments to Aabar BVI.

"1MDB and MoF have to honour its guarantees and financial commitments to address the default, which if left unpaid, may lead to cross-defaults by 1MDB and MoF. This will lead to dire consequences for the financial position of the government.

"This means that ultimately, the burden falls on the people who will have to bear the full brunt of 1MDB's loans when they are already struggling to make ends meet with the increasingly high cost of living," Leong added.

He added that the PAC and Speaker of the Parliament have to take action under Section 20 of the Houses of Parliament (Privileges and Powers) Act 1952 which provides that any person who gives false evidence before the House or any of its committee shall be guilty of an offence and liable to be punished under Section 193 of the Penal Code, which includes a jail term of up to three years, and a fine.

Leong further said the Attorney General and the police can no longer deny there is no wrongdoing.

"There is clear and irrefutable evidence of fraud and deceit. The police and the Malaysia Anti-Corruption Commission (MACC) have to take urgent action to trace and recover the US$3.5 billion paid to Aabar BVI," Leong added.

He said one of the immediate actions to be taken is to apply for a world-wide injunction order to freeze the bank accounts and assets of those who received the proceeds.