Thursday 28 Mar 2024
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KUALA LUMPUR (March 2): Transparency International Malaysia (TI-M) has strongly urged the government to set up a special high-level task force to conduct a full investigation into the finances of 1Malaysia Development Berhad (1MDB), including the latest "revelation" of a USD$700 million “loan” to a little-known oil company.

A TI-M statement said today, 1MDB’s finances were of high public importance and national interest as it involved tax payers’ money besides the potentially damaging impact on the banking system and the nation’s economy.

It noted that allegations surrounding the 1MDB had drawn much international attention, and raised questions about the Malaysian government’s commitment to pursuing transparency and accountability.

For these reasons, it is insufficent to have just the Auditor General's office conduct a detailed audit of 1MDB's financial operations as requested by the Public Accounts Committee (PAC), although TI-M commended the PAC for the request.

Alluding to latest revelation surrounding 1MDB, it said the task force should probe the numerous allegations involving a USD$700 million “loan” which was supposedly repaid to a little known oil company after 1MDB entered into a US$2.5 billion joint venture agreement.

“TI-M calls for the immediate formation of a special task force comprising agencies such as Commercial Crime Division of Police, Auditor's General Office, Bank Negara Malaysia, Ministry of Finance and Malaysian Anti-Corruption Commission to investigate 1MDB’s finances,” it said.

It said such financial transactions as reported could be highly complicated and would require a high degree of expertise in the investigation process.

Moreover, there were various angles to be looked into, requiring the collaboration of experts from various agencies to determine the truth and possible negative impact.

“Thus, Ernst & Young and KPMG should be included in this task force as they were the external auditors of 1MDB prior to withdrawing their services to 1MDB.

“Reasons for their unexpected withdrawal as external auditors could provide explanations as well as penetrating leads into such an investigation,” it said.

TI-M said that 1MDB, as a corporate citizen, had a role to play and must exercise their professional obligations both to their clients and society even though 1MDB had repeatedly stated that its finances were in order.

“Hence, it is appropriate and timely that this special task force be formed to look into this issue in a comprehensive and transparent manner.

“And the task force must have the power to call relevant organizations and individuals to assist in its investigations so as to leave no stone unturned,” it said.

The independent non-governmental body said such a move might  uncover a plethora of larger issues such as corporate crime, embezzlement, corruption, misappropriation, mismanagement of funds, inappropriate decision-making and unethical behaviour including, and not limited, to misuse of public office.

“Hence, it is timely for the government to prove its seriousness with this issue and act in a decisive and transparent manner.

“Least, the perception of corruption is not a misperception,” it said.

TI-M said it issued a statement a year ago, urging 1MDB not only to be more transparent in its corporate reporting but also to do it in a timely manner, while demonstrating greater transparency, accountability, and  high standards of accuracy and completeness in its records.

“Failure to do so may contribute to a negative impact on the perception of corruption in our country, Malaysia,” it said.

 

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