The damning Public Accounts Committee (PAC) Report on 1Malaysia Development Bhd (1MDB) was tabled in Parliament yesterday.
Among the lengthy list of transgressions by 1MDB, the PAC established that:
The sums of US$700 million and US$330 million have been misappropriated to Good Star Limited, a company unrelated to the purported 1MDB-Petrosaudi joint venture in 2009 and 2011. (7.3.4-7.3.5)
US$3.51 billion has been paid to a British Virgin Islands (BVI) incorporated Aabar Investment PJS Limited “Aabar (BVI)” in the form of collaterals, options termination compensation and further unexplained “top-up security” payments despite obvious doubts over who owns Aabar (BVI).
The Auditor-General (AG) was also unable to verify the actual transactions above because 1MDB has refused to provide the bank statements of its overseas bank accounts and foreign subsidiaries. (7.3.9 – 7.3.13)
As a result of 1MDB’s refusal to cooperate, the AG was also unable to ascertain the purported existence and value of the so-called US$940 million worth of “units” parked at the Swiss Bank branch of BSI Bank in Singapore. (7.3.15)
Instead of answering the respective findings of the Report, 1Malaysia Development Bhd (1MDB) thought it more appropriate to train its guns on the Wall Street Journal (WSJ). 1MDB claimed that it was entirely inaccurate of WSJ to claim in its article that the PAC had found that “billions of dollars” had gone missing from 1MDB, and had recommended a “criminal investigation” on the fund’s senior management.
Why is 1MDB so ruffled with the claim by WSJ that “billions of dollars” were “found missing” based on the PAC Report?
Indeed, the PAC Report never made the specific claim that the above billions were “missing” officially. However, the fact of the matter is these billions are unaccounted for and cannot be verified, as confirmed by the AG himself.
Hence, if 1MDB is so offended by the missing billions description by WSJ, why didn’t the company show where these monies were with its bank statements and their respective transaction details to the AG since May 2015?
In fact, 1MDB’s recalcitrance and utter contempt for the Auditor-General over the above, despite countless reminders by the AG and the PAC, only goes to reinforce the global suspicions that the billions of dollars have indeed gone missing.
The refusal by 1MDB and its management to cooperate over the above unaccounted billions of dollars left the PAC with no choice but to recommend investigations by the relevant
authorities. These “relevant authorities” would certainly include the Royal Malaysia Police to track possible criminal elements in the flow of funds by 1MDB overseas.
1MDB should stop trying to play the victim of a non-existent global malicious conspiracy against the company. 1MDB has had every opportunity to clear its name over the past year and has now been proven to have failed to do so.
The real victims are the Malaysian people whose trust in 1MDB, its management and directors, have been betrayed by half-truths, lies, deceit and cover-ups.