KUALA LUMPUR (May 24): Several transactions amounting US3.5 billion (RM14.25 billion) to Aabar Investment PJS Ltd (Aabar BVI) did not require the written approval from Prime Minister Datuk Seri Najib Razak under Article 117 of the Memorandum and Articles of 1Malaysia Development Bhd (1MDB), said the Ministry of Finance. 

The ministry said that 1MDB had made several transactions amounting to US$3.5 billion to Aabar BVI.

"All these transactions were made according to several agreements signed and all the management actions in this context are following the approval or instruction of the Board of Director, whether general, specific or ratification.

"For the purpose of the transactions, there is no need to get the written approval from the Prime Minister under Article 117 of Memorandum and Articles (M&A) of 1MDB," the ministry said in a written reply to Petaling Jaya Utara MP Tony Pua.

Pua has asked the Minister of Finance to state whether the Prime Minister had given written approval under Article 117 to allow 1MDB directly, or indirectly to pay as much as US$3.5 billion to Aabar BVI.

The role of the Prime Minister by virtue of the Article 117 of the M&A of 1MDB has been hotly debated since the Public Accounts Committee (PAC) report on its investigation on 1MDB was tabled to the Parliament on April 7.

Under Article 117, the Prime Minister has the power to hire and fire a director, and he has the power to approve all the investment decision.

The PAC has found that 1MDB's former chief executive officer Datuk Shahrol Azral Ibrahim Halmi had defied the directions of the Board and taken action contrary to the Board's instructions. The bi-partisan Committee has recommended that the authorities investigate him.

Meanwhile, in a separate written reply to Kampar MP Ko Chung Sen, Najib said that the role of 1MDB Advisory Board has no function  and only act as advisor.

"All the decisions and dealings of 1MDB were made by 1MDB's management and Board of Directors," he said in the brief reply.

Najib was the chairman of the Advisory Board before the board was dismissed by the Minister of Finance Inc (MoF Inc) following the recommendations of the PAC.

Ko has asked the minister to state whether the role of the 1MDB Advisory Board and whether the Prime Minister and other advisory panel had been referred in terms of formulating financing strategy, purchase and sale of assets.

He also asked whether the PM and other advisory panel had been fully briefed about 1MDB's management of billion of dollars.

However, Najib did not reply on this.

In another written reply to Ko, the Ministry of Finance also said briefly, "There is no proof in the PAC report which showed that there is any wrongdoings by the Prime Minister in the management of 1MDB.

"All the decisions and dealings of 1MDB were made by the 1MDB's Management and the Board of Directors."

Ko had asked if Najib read the 1MDB documents that requires his signature for approval and whether he understood the contents of the document before lowering his signature and whether he had been misled by 1MDB's CEO and his officials to sign a document authorizing the transfer of billions of ringgit.