SSM must take action against 1MDB subsidiaries, says MP Pua

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KUALA LUMPUR:  The Companies Commission of Malaysia (SSM) must take appropriate action against the company directors of 1Malaysia Development Bhd's (1MDB) subsidiaries ­— 1MDB Real Estate Sdn Bhd and 1MDB Energy (Langat) Sdn Bhd — for failing to file the companies financial accounts since March  31, 2012, said DAP National Publicity Secretary and MP for Petaling Jaya Utara Tony Pua today.

"This is because the directors of these companies have run afoul of the Companies Act 1965 for failing to hold the companies' annual general meetings, and file the annual returns to the Registrar of Companies together with the audited financial reports," he said.

Although the parent company, 1MDB, had filed its accounts on Nov 3, its two subsidiaries had yet to do so, said Pua who showed documentary proof at Parliament lobby today based on company searches he made with the SSM on 1MDB Real Estate and 1MDB Energy (Langat).

Pua pointed out that Clause 169 (1) of the Companies Act states that the directors of every company shall at some date not later than 18 months after the incorporation of the company, and subsequently once at least in every calendar year at intervals or not more than 15 months, lay before the company at its annual general meeting a profit and loss account for the period since the preceding account (or in the case of the first account, since the incorporation of the company).

He also cited clause 171 (1) which states: "the Act dictates imprisonment for five years or RM30,000 if any director of a company fails to comply or take all reasonable steps to secure compliance by the company with the foregoing provisions of this division or has by his own wilful act been the cause of any default by the company thereunder, he shall be guilty of an offence against this Act".

"Now, once again I did the latest extract yesterday after reading Deputy Finance Minister Datuk Ahmad Maslan's accusation relating to 1MDB Energy (Langat).

"It was another waste of RM15 because the information remained unchanged, that no account has been filed since March 2012," Pua said. He also ticked off Maslan for not checking his facts .

Pua said he was amused by the challenge requesting him to apologise in Parliament. "I get another chance to refer him (Maslan) to the Privileges and Rights Committee, he said.

Pua intends to raise the matter again in Parliament during the Ministry of Domestic Trade and Consumer Affairs' debate today to ask the minister why no action has been taken against the companies.

He queried how a company that could not finalised its accounts could be allowed to be listed on the stock exchange.

"How would investors invest in a stock if they don't know its financial status," he asked.