Come clean on 1MDB investigations, PKR lawmaker tells Putrajaya

Pakatan Rakyat MPs have been demanding 1MDB's financial details which involve up to RM42 billion in public funds. – The Malaysian Insider file pic, December 23, 2014.

Putrajaya and police must break their silence over the ongoing probe into controversial 1Malaysia Development Berhad (1MBD), said an opposition lawmaker today.

This, according to PKR Padang Serai MP N. Surendran, follows The Malaysian Insider report of a meeting between Datuk Seri Najib Razak and Tun Dr Mahathir Mohamad to discuss issues related to the strategic development firm.

Surendran said the public was entitled to a transparent and comprehensive investigation into the “massive financial mess” involving up to RM42 billion in public funds.

"Neither Najib nor Dr Mahathir has so far denied holding such a meeting. If true, this secret meeting raises serious questions about the ongoing investigations into the scandal," he said in a statement today.

He added that despite promising that police were investigating the case, the Inspector-General of Police Tan Sri Khalid Abu Bakar has yet to provide information on the progress of the probe.

Police had opened an investigation paper on 1MDB after Batu Kawan Umno division deputy chief Datuk Paduka Khairuddin Abu Hassan lodged a report against the company over its alleged dubious financial activities and massive borrowings.

"The investigation into this unprecedented financial scandal must be done professionally and in accordance with due process of law by the duly constituted enforcement authorities.

"The authorities must break their silence on the progress of investigations. This investigation should be a national priority. The public has a right to know the truth."

The Malaysian Insider reported yesterday that Najib met Dr Mahathir on Saturday but details of the meeting have not been revealed.

"It was cordial. The PM is satisfied with the meeting," a source had told The Malaysian Insider.

The meeting came after the country’s longest serving prime minister had repeatedly raised questions about the heavy debt and use of funds at 1MDB and had complained about its operations via his blog as well as at various media conferences.

It also came amid the ringgit's slide against the US dollar, which has caused a ballooning of part of 1MDB's debts which are in the greenback.

The ringgit had declined by 6.5% in the past nine months to RM3.48 against the US dollar.

Surendran, who is also PKR political bureau member, said Najib should confirm the existence of such meeting and reveal the content of discussion.

Apart from Dr Mahathir, critics have also complained about the lack of transparency into how the money is managed out of the Cayman Islands and it has been estimated that at least RM18 billion of 1MDB's money is parked there.

This prompted 1MDB's board of directors chairman Tan Sri Lodin Wok Kamaruddin to issue a statement last night, saying that bringing the funds back would have exposed them to fluctuations on the foreign exchange market.

Lodin also said that there was nothing unusual about companies of 1MDB's size investing their funds in the Caymans, with the Cayman Monetary Authority recognised as one of the leading fund regulators in the world.

- TMI