(July 31): Opposition members of the bipartisan Public Accounts Committee panel are going ahead with the inquiry into 1Malaysia Development Bhd (1MDB) next week in defiance of the Dewan Rakyat Speaker's directive.

PAC vice chairman Dr Tan Seng Giaw said there had been no official letter from Parliament informing them of the suspension.

"We have scheduled hearings from August 4 to 6 and August 17 and 18 related to 1MDB and to date, we have not received any letters to the contrary. No official letters have been sent to us.

"So the PAC is still functioning and we will be at the August 4 meeting," he said at a press conference at DAP's headquarters today.

Speaker Tan Sri Pandikar Amin Mulia had said yesterday that the PAC cannot go ahead with its meetings until a new chairman is elected.

The website of the Barisan Nasional Backbenchers' Club at BNBBC.my reported the Speaker saying that Standing Orders 77(3) cannot be used when there is a vacancy in the PAC's chairmanship. It only allowed an existing member to be elected to chair the meeting in the absence of the chairman or his deputy due to ill health or unavailability for specific reasons.

"Additionally, to avoid any dispute or any issues that arise over the validity of the PAC proceedings when the chairman's post is vacant in the future, it is only fair if PAC is convened after the appointment of the new chairman," Pandikar was quoted as saying.

Four PAC members were elevated to the cabinet in a reshuffle on Tuesday, three as deputy ministers and one as a minister. The move raised questions as to its on-going proceedings, including its inquiry into 1MDB, which is to continue next week.

PAC chairman Datuk Nur Jazlan Mohamed has been appointed the deputy home minister, while Datuk Seri Reezal Merican Naina Merican is now deputy foreign minister and Datuk Mas Ermieyati Samsudin is the deputy tourism and culture minister.

Another member Datuk Wilfred Madius Tanngau is appointed the Science, Technology and Innovation minister.

Nur Jazlan had said on Tuesday that all PAC proceedings, including its inquiry into 1MDB, were temporarily halted pending the appointment of new members to replace four of them but this was disputed by DAP's Kepong Dr Tan who had insisted that the on-going proceedings could proceed as scheduled.

Dr Tan said today even without the attendance of other Barisan Nasional members in PAC, the proceedings could still continue as the Standing Order states that a minimum of three members, including that of the chairman was enough.

"We are capable of asking relevant questions to ferret out the truth from those who have been managing 1MDB," he said.

PAC member William Leong said the provisions stated on Standing Order 77(3) was clear and noted the words "any reason" mentioned in it includes cabinet appointments.

Standing Order 77(3) reads: “In the absence of the Chairman or Vice-Chairman due to illness or for any other reason whatsoever, the Committee shall elect any one member to act as a Chairman to preside over the Committee’s meeting.”

PAC member Tony Pua said Pandikar's interpretation of the Standing Oder 77(3) by stating the provision is not applicable when vacancy arose due to ministerial appointments was "absolutely nonsense".

"The interpretation taken by Pandikar is an absolute abuse of his powers. This will also strengthen perception that he's under orders from the prime minister to halt and stifle the PAC.

"By insisting that PAC cannot function when its members are appointed as ministers and deputy ministers makes a complete mockery of the speaker's office and Parliament institution," he said.

PKR's Teluk Kemang MP Datuk Kamarul Baharin Abbas who also sits in the PAC said if Putrajaya was sincere in getting to the bottom of 1MDB scandal, the proceedings should be allowed to go on as scheduled.

1MDB current and former top executives are set to be present at the PAC inquiry from August 4.

The state investment firm's former CEO Datuk Shahrol Azral Ibrahim Halmi will be the first to face the bi-partisan committee, while president and group executive director Arul Kanda Kandasamy are set to be grilled the next day.

Mohd Hazem Abdul Rahman, who served as 1MDB's CEO from March 2013 to January 2015, will appear before the panel on August 6.

Criticism has been mounting over the Finance Ministry wholly owned investment vehicle, established in 2009.

Scrutiny has grown more intense following whistleblower site Sarawak Report's recent exposes, which piled pressure on prime minister Datuk Seri Najib Razak and prompted opposition politicians, former and current Umno leaders including long serving former prime minister Tun Dr Mahathir Mohamad and anti-graft bodies to demand a thorough investigation into the fund.

The auditor-general had submitted a preliminary report to the PAC on July 10, with a full report due by the year of the year.

A special task force, meanwhile, is also probing the company's operations.

The strategic fund has come under the public scrutiny mainly because of the whopping RM42 billion debts that it has racked up in the past five years.

1MDB has not been able to generate enough earnings to service its debts. This raises public concerns over some of its debt papers issued with the government’s letter of support – meaning the government is responsible for the fund’s debt repayment should it default.

Consequently, the investment fund is currently stepping up efforts to hive off its assets, namely power generation plants and land, to ease its extremely tight cash flow. – The Malaysian Insider