Thursday 28 Mar 2024
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KUALA LUMPUR (March 24): Singapore's authorities will support the probe into troubled 1Malaysia Development Bhd (1MDB) by providing assistance within the full ambit of its laws, a business daily reported today.

Singapore Business Times (SBT), quoting a spokesperson from the Monetary Authority of Singapore (MAS), said cooperation between authorities in Singapore and Malaysia may have already begun, as the Singaporean authorities are already in contact with their Malaysian counterparts.

“Singapore authorities are in touch with their Malaysian counterparts. We are committed to assist within the full ambit of our laws,” the spokesperson was quoted as saying.

The spokesperson, however, stopped short of revealing further details, saying it would be inappropriate to on-going investigations in Malaysia.

The report stated that MAS has also been engaging with relevant financial institutions in Singapore and does not comment on its “supervisory dealings with specific financial institutions”.

The spokesperson also reportedly said MAS was unable to comment on individual banking relationships, due to “confidentiality considerations”.

"Financial institutions here are required to conduct rigorous customer due diligence, regular account reviews, and to monitor for and report any suspicious transactions," the SBT report said.

Singapore's financial regulator was responding to queries from the daily on whether the Malaysian authorities had approached MAS for assistance in the 1MDB probe.

This followed a revelation that a Singaporean branch of a Swiss wealth manager, BSI Singapore, was in custody of US$1.103 billion (RM4.05 billion) of 1MDB funds that was redeemed from investments parked in the Cayman Islands.

On Monday (March 23), Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz was reported as saying the central bank will “uphold areas under its purview and legislation that it operates in”, with regards to the audit and investigation being carried out on 1MDB.

“As the central bank, we will uphold whatever that is under our purview under the legislation that we operate, and this is important. We are accountable for it,” she said in an exclusive interview with CNBC.

On March 9, Inspector General of Police Tan Sri Khalid Abu Bakar had confirmed the police are investigating the state-owned strategic investment company and has formed a taskforce comprising the Attorney-General’s Chambers, the Malaysian Anti-Corruption Commission and the police, to investigate 1MDB.

Prime Minister and Finance Minister Datuk Seri Najib Razak, who chairs 1MDB’s advisory board, had earlier called on Auditor General (A-G) Tan Sri Ambrin Buang to audit the debt-laden entity.

The audit by the A-G’s Department will be passed to Parliament’s Public Accounts Committee (PAC) for further inspection.

1MDB has come under scrutiny over its financial management after raking up RM42 billion in debts since 2009, raising fears of a downgrade in the sovereign rating, should it fail to repay its loans.

On March 12, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah formally acknowledged 1MDB’s financial position was “unsustainable”, with a “cash flow problem and a high net gearing of 17 times".

The Finance Ministry had also confirmed the Cabinet approved a RM950 million standing credit to 1MDB, which the Opposition had deemed as a bailout.

Najib had later confirmed the government had also issued a “letter of support” to IMDB Global Investments Ltd, a wholly-owned unit of 1MDB, to borrow US$3 billion to repay its debt.

The prime minister had said the letter of support meant the government will repay the debt, if 1MDB Global Investments failed to do so.

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