The Malaysian Insight

PUTRAJAYA has been urged to release a “full, transparent” report on 1Malaysia Development Bhd’s official status as it is key to bringing closure to the case, said G25, a group of former senior civil servants.

In its Invigorating Economic Confidence in Malaysia report released today, the group said the 1MDB report should contain explanations from management towards meeting financial commitments and achieving corporate objectives.

“Even if the authorities do not intend to prosecute for any wrongdoing, as recommended by the investigation task force, it will quell all concerns if the government were to release a full, comprehensive, transparent report on the official status of 1MDB, particularly its financial position.

“The report should be consistent with and reflect the findings and court documents already in the public domain in the US, Switzerland, Singapore, etc, and the actions taken by the authorities in these countries,” said the G25 report.

It said bringing closure to the case could put to rest lingering concerns about the transactions, and more so the losses and contingent liabilities to the federal government.

The group said the report on 1MDB’s current asset and liabilities position should be submitted to Parliament and made available to the public.

“A ‘closure’ report will once and for all lay to rest the matter and will not cause recurring demands for a report on 1MDB every year in the future, as in the case of the foreign exchange losses incurred by Bank Negara Malaysia in 1992-93.

“Such a report will allay investor concerns about the impact of 1MDB on the government’s financial conditions,” it said, adding that the report should also include details on the restructuring of the organisation and its governance structure, as well as procedures and processes to be put in place for 1MDB to be fully accountable to the public.

“Improvements to governance structure, procedures and processes on sound decision-making, and proper checks and balances to ensure accountability will all contribute to investor confidence that Malaysia is taking the bull by the horns and moving forward.”

It said without such a report on 1MDB, analysts, ratings agencies and other interested parties would continue to make all kinds of estimates that could hurt investor confidence.

“Fundamentally, the 1MDB event has highlighted the severe lack of governance and accountability in government investment agencies.

“The report can address how governance is being improved, and how 1MDB, as a government agency, will be subject to accountability, like all government companies.”

The Monetary Authority of Singapore and the country’s Commercial Affairs Department have seized a number of bank accounts over possible money laundering offences related to 1MDB.

In July, Singapore sentenced wealth planner Yeo Jiawei to 54 months’ jail for money laundering and cheating, in relation to billions of dollars allegedly misappropriated from 1MDB.

In August, the US Department of Justice began a criminal investigation into money allegedly stolen from 1MDB, delaying civil suits filed over the past two years to forfeit more than US$1 billion (RM4.28 billion) in real estate and other assets.

In its civil cases, the DoJ alleged that between 2009 and 2015, more than US$4.5 billion belonging to 1MDB had been diverted by high-level officials of the fund and their associates.

On Monday, US Attorney-General Jeff Sessions dubbed the 1MDB scandal as “kleptocracy at its worst” and said more than US$4.5 billion in funds had been laundered via a complex web of transactions from shell companies, ranging from Switzerland and Singapore to Luxembourg and the US. – December 9, 2017.