1MDB’s total loss estimated at RM39 billion, says anti-graft body

Source: Malaysian Insight

The Centre to Combat Corruption and Cronyism (C4) has produced a report on the RM39 billion 1MDB allegedly lost through fraud and mismanagement. The report is released in Petaling Jaya today. – Pic from The Malaysian Insight.

The Centre to Combat Corruption and Cronyism (C4) has produced a report on the RM39 billion 1MDB allegedly lost through fraud and mismanagement. The report is released in Petaling Jaya today. – Pic from The Malaysian Insight.

SCANDAL-RIDDEN national investment fund, 1Malaysia Development Berhad (1MDB), has lost an estimated RM39 billion through fraud and mismanagement, said an anti-graft watchdog, most of which is irrecoverable.

The losses, which were revealed in a report by the Centre to Combat Corruption and Cronyism (C4), come on the heels of a March 29 government announcement that the firm has paid off its short-term loans.

The RM39 billion losses, C4 said, were separate from the RM39.8 billion in outstanding debts 1MBD still owed in various bonds.

One of the report’s authors, P. Gunasegaram, said the RM39 billion losses included money that was allegedly stolen and funds wasted through mismanagement. Read more

STATEMENT: Declassify The Auditor General’s Report on 1MDB

pdfSTATEMENT DATED 19 JULY 2016

DECLASSIFY THE AUDITOR GENERAL’S REPORT ON 1MDB

File photo shows a man walking past a 1MDB billboard in Kuala Lumpur. The tabling of the final 1MDB audit report before the PAC has already been delayed twice and has now been classified under the OSA. — Picture by Yusof Mat Isa

File photo shows a man walking past a 1MDB billboard in Kuala Lumpur. The tabling of the final 1MDB audit report before the PAC had been delayed twice and has now been classified under the OSA. — Picture by Yusof Mat Isa

Details of the 1MDB Auditor General’s report disclosed by Sarawak Report has been met by a wall of silence by the Government save for the usual vitriol hurled at the portal for its disclosure of a classified document.

The directive to the Auditor General to investigate 1MDB came from the Cabinet in March 2015. The report was completed and handed to the Public Accounts Committee (PAC) on 4 March 2016 at which point it was classified as an official secret. It is unclear exactly who classified it although the Act requires that if it does not fall within the schedule that refers generally to government decisions and issues relating to national security, then it must be so classified by a Minister, the Mentri Besar or Chief Minister or other authorised public officer.  Who therefore classified the report as an official secret?  It must be ensured that no conflict of interest arose in the classification.

The issue now is whether the Auditor General’s report should be declassified under Section 2C of the Official Secrets Act.  There are compelling reasons why it must.

First, this is an audit sought by the Cabinet who was perfectly justified in doing so in view of the fact that public funds were involved.  The Cabinet was therefore acting in the public interest.  However, Cabinet’s task is incomplete if they do not consider the report in full and if they do not publicly disclose its contents.  One does not ask for such an important report to be done by the Auditor General, only to make his findings secret.  In other words, the Auditor General is brought into the picture to examine if there are improprieties relating to public funds.  It is therefore incumbent on the Cabinet to direct the declassification of the Auditor General’s report. Read more

STATEMENT: Declassify The Auditor General’s Report on 1MDB

STATEMENT DATED 19 JULY 2016

DECLASSIFY THE AUDITOR GENERAL’S REPORT ON 1MDB

File photo shows a man walking past a 1MDB billboard in Kuala Lumpur. The tabling of the final 1MDB audit report before the PAC has already been delayed twice and has now been classified under the OSA. — Picture by Yusof Mat Isa

File photo shows a man walking past a 1MDB billboard in Kuala Lumpur. The tabling of the final 1MDB audit report before the PAC had been delayed twice and has now been classified under the OSA. — Picture by Yusof Mat Isa

Details of the 1MDB Auditor General’s report disclosed by Sarawak Report has been met by a wall of silence by the Government save for the usual vitriol hurled at the portal for its disclosure of a classified document.

The directive to the Auditor General to investigate 1MDB came from the Cabinet in March 2015. The report was completed and handed to the Public Accounts Committee (PAC) on 4 March 2016 at which point it was classified as an official secret. It is unclear exactly who classified it although the Act requires that if it does not fall within the schedule that refers generally to government decisions and issues relating to national security, then it must be so classified by a Minister, the Mentri Besar or Chief Minister or other authorised public officer.  Who therefore classified the report as an official secret?  It must be ensured that no conflict of interest arose in the classification.

The issue now is whether the Auditor General’s report should be declassified under Section 2C of the Official Secrets Act.  There are compelling reasons why it must.

First, this is an audit sought by the Cabinet who was perfectly justified in doing so in view of the fact that public funds were involved.  The Cabinet was therefore acting in the public interest.  However, Cabinet’s task is incomplete if they do not consider the report in full and if they do not publicly disclose its contents.  One does not ask for such an important report to be done by the Auditor General, only to make his findings secret.  In other words, the Auditor General is brought into the picture to examine if there are improprieties relating to public funds.  It is therefore incumbent on the Cabinet to direct the declassification of the Auditor General’s report. Read more

Malaysia seeks to shut down 1MDB scandal as report blames ex-CEO

1MDB amassed more than RM50 billion of debt over six years, using some of it to purchase energy assets, including joint ventures with companies in Saudi Arabia and Abu Dhabi. ― Reuters pic

1MDB amassed more than RM50 billion of debt over six years, using some of it to purchase energy assets, including joint ventures with companies in Saudi Arabia and Abu Dhabi. ― Reuters pic

KUALA LUMPUR, April 8 ― Malaysian lawmakers sought to draw a line under the corruption allegations surrounding state investment company 1MDB, pinning the blame for financial lapses on its former chief executive and absolving his political bosses of responsibility for a scandal that’s roiled markets and sparked worldwide graft probes.

A bipartisan parliament committee identified at least US$4.2 billion (RM16.55 billion) of unauthorised or unverified transactions at 1Malaysia Development Bhd (1MDB), in a report published yesterday. It recommended that former CEO Datuk Shahrol Halmi and other managers should be investigated, and a group of advisers headed by Prime Minister Datuk Seri Najib Razak ― who wasn’t otherwise mentioned in the 106-page document ― be disbanded. The board of directors offered to resign. Read more

In a nutshell: The PAC’s report on 1MDB

Source: The Malay Mail Online

A 1 Malaysia Development Berhad (1MDB) billboard can be seen in Kuala Lumpur, March 3, 2015. — Picture by Yusof Mat Isa

A 1 Malaysia Development Berhad (1MDB) billboard can be seen in Kuala Lumpur, March 3, 2015. — Picture by Yusof Mat Isa

KUALA LUMPUR, April 7 — The Public Accounts Committee (PAC) released today its report on 1Malaysia Development Berhad (1MDB), after an investigation that spanned 10 sessions across nine months.

According to the PAC, it kicked off its inquiry last May 19 with a briefing by the Treasury secretary-general and the Economic Planning Unit’s director-general, before concluding proceedings on February 11 with the interview of 1MDB’s former chairman Tan Sri Bakke Mohd Salleh and former CEO Datuk Shahrol Azral Ibrahim Halmi.

Audit firms Deloitte and KPMG, 1MDB’s current chairman Tan Sri Lodin Wok Kamaruddin and current CEO Arul Kanda Kandasamy were also called up before the bipartisan parliamentary committee for its probe on 1MDB’s management and investment activities. Read more

1MDB audit no longer ‘secret’ once PAC report tabled in Parliament, Hasan says

Source: The Malay Mail Online

Malaysian Parliament - MMO File pic

Malaysian Parliament – MMO File pic

KUALA LUMPUR, March 7 — The federal audit report on 1Malaysia Development Berhad (1MDB) will no longer be classified a state secret under the Official Secrets Act (OSA) 1972 once the Public Accounts Committee (PAC) tables its findings on it in Parliament, panel chairman Datuk Hasan Arifin said today.

Hasan said in a statement here that the report by the National Audit Department is only classified an official secret until the PAC’s report on 1MDB is presented to the lower House.

“In today’s meeting, Tan Sri Ambrin Buang, the Auditor-General explained that after the PAC report is tabled in parliament, the 1MDB final audit report will no longer be an official secret document under the Official Secrets Act 1972,” he said.

He added that the decision to classify the report as secret is the A-G’s prerogative, noting that latter is responsible for making sure such documents are not leaked by “irresponsible” bodies to create a negative perception of the agency. Read more

Only supporting documents from AG’s report will be classified under OSA, minister says

Source: The Malay Mail Online

KLUANG, March 5 — Only support documents from the Auditor-General (AG) that accompany the Public Accounts Committee (PAC) report on the administration of 1Malaysia Development Bhd (1MDB) is classified under the Official Secrets Act 1972 (OSA).

The PAC’s summarised report can be tabled in Parliament said Deputy Home Minister I Datuk Nur Jazlan Mohamed.

“The report classified under the OSA is the AG’s report. It must be made clear to avoid any misunderstanding,” he said attending an Excellent Service Awards presentation for the Prison Department’s Intan Kampus Wilayah Selatan (IKHWAS), here today.

What is important is that the PAC report need the consensus of all panel members to ensure the report from the committee has credibility, said Nur Jazlan. Read more

Final 1MDB audit report under OSA to prevent info leak, PAC chief says

Source: The Malay Mail Online

KUALA LUMPUR, March 4 — Parliament’s Public Accounts Committee (PAC) disclosed today the government’s move to classify the final federal audit report on 1Malaysia Development Berhad (1MDB) under the Official Secrets Act (OSA) was done to prevent information from being leaked.

PAC chairman Datuk Hasan Arifin added that the Federal Audit Department sought to classify the final report after its previous preliminary report was leaked to the media after it was tabled before the panel last year.

“The PAC concedes and understands the need by the Federal Audit Department to classify its audit report on 1MDB as an official secret under the OSA 1972 and the Auditor General has the power to do so.

“The decision was made after knowing that information from the preliminary report on 1MDB that was tabled before the PAC July last year had been leaked selectively by irresponsible parties to create negative publicity which ultimately affected the credibility of the Federal Audit Department and this panel itself,” Hasan said in a statement. Read more

Final 1MDB audit report under OSA, sources say

Source: The Malay Mail Online

File photo shows a man walking past a 1MDB billboard in Kuala Lumpur. The tabling of the final 1MDB audit report before the PAC has already been delayed twice and has now been classified under the OSA. — Picture by Yusof Mat Isa

File photo shows a man walking past a 1MDB billboard in Kuala Lumpur. The tabling of the final 1MDB audit report before the PAC has already been delayed twice and has now been classified under the OSA. — Picture by Yusof Mat Isa

KUALA LUMPUR, March 3 — The final federal audit report on 1Malaysia Development Berhad (1MDB) has been classified under the Official Secrets Act (OSA) 1972, even though it is scheduled for tabling before a parliamentary committee, two sources have disclosed.

Malay Mail Online also understands that Public Accounts Committee (PAC) members will not be allowed to take home the 300-page report on the controversial state investment fund that is set to be tabled before the PAC tomorrow.

“The 1MDB report is registered with the National Security Council as OSA,” one source told Malay Mail Online yesterday.

The source added that in contrast, the previous preliminary report on 1MDB by Auditor-General Tan Sri Ambrin Buang, which had not been made public, was not classified under the secrecy law.

PAC members were previously allowed to bring home the preliminary 1MDB audit report, which was submitted to the parliamentary committee last July, although the report had security tags, according to the source.

The tabling of the final 1MDB audit report before the PAC has already been delayed twice. Read more