The Malaysian Insight

PRIME Minister Najib Razak today defended the 1Malaysia Development Bhd’s (1MDB) RM42 billion debt, saying the money never disappeared, unlike the RM31 billion losses incurred in Bank Negara’s foreign exchange scandal.

Addressing 1,200 imams, kampung heads, tahfiz teachers and community leaders who received offer letters to perform the haj, Najib said the country suffered greater financial losses in the forex scandal, an apparent swipe against Dr Mahathir Mohamad. 

The Bank Negara forex losses occurred during Dr Mahathir’s tenure as prime minister in the 1990s. Dr Mahathir is now chairman of the opposition pact, Pakatan Harapan (PH), and a fierce Najib critic.

“We can’t criticise 1MDB until we can’t see its fair share of good. 

“Don’t slander or say that RM42 billion have disappeared… it was debts that we could settle with assets that are more than the debts,” he said at a ceremony to hand over the offer letters to the recipients at the Putra Mosque in Putrajaya.

This is the eighth year of the prime minister’s special haj programme, which was first introduced in 2011. The 1MDB foundation is also one of its sponsors.

Najib admitted on January 23 that there were lapses in the 1MDB management but to date, no one has been charged with any crime in the sovereign fund’s mismanagement.

“Now, I am not going to brush over this issue. There were indeed failings at the company, there were lapses of governance. There was valid cause for concern,” Najib told investors at Malaysia 2018 in Kuala Lumpur.

“This is why I ordered one of the most comprehensive and detailed investigations in Malaysia’s corporate history, one that involved multiple lawful authorities, including a bipartisan parliamentary body. Their findings were taken on board – and the company’s board was dissolved, its management team changed, and its operations reviewed.”

The prime minister, who started 1MDB and was chairman of its advisory board for a period, also said that 1MDB was targeted to boost claims that Malaysia’s economy was suffering.

“The loss of money, bigger losses like the forex RM31 billion happened during the administration of someone who said 1MDB-sponsored haj is not ‘Haji Mabrur’ (divinely accepted haj), that the God will not accept (the haj).

“I want to thank Perak mufti Harussani for making a statement it is the absolute power of Allah (to determine) and humans have no right, it’s not within his (Mahathir’s) knowledge,” he said today, adding the matter should not politicised.

In December 2016, Dr Mahathir was reportedly saying haj performed using 1MDB money would not be accepted (mabrur).

He said it was because the funds were allegedly stolen by Najib.

The PH chairman received backlash from several muftis who said it was Allah who determined whether prayers performed by Muslims would be accepted or not.

Najib also hinted on polling date, saying the 14th general election would be called before the pilgrims went to perform their haj in July.

“If the government doesn’t change, Insyaallah you can perform your haj in a comfortable manner,“ he told the 1,200 recipients.

Among those who were present at today’s ceremony were Minister in the Prime Minister’s Department Jamil Khir Baharom, Deputy Minister in the Prime Minister’s Department Asyraf Wajdi Dusuki, 1MDB chairman and Finance Ministry secretary-general Mohd Irwan Serigar Abdullah and 1MDB chief executive officer Arul Kanda Kandasamy. – February 2, 2018.