1MDB a black hole created by Najib, says Raub MP

Ariff Sabri laments that the PM's 'negligence and stupidity' has allowed rogues to cheat the Malaysian public.

PETALING JAYA: 1MDB has become a black hole in the Malaysian cosmos, Raub MP Ariff Sabri declares in his latest blog posting.

“And this black hole was created by Prime Minister Najib Abdul Razak,” he says. “He and the board of directors – present and previous – are responsible for the financial disaster which has hit the nation.”

Ariff points out that 1MDB is a private company owned by the Ministry of Finance but whose debts are guaranteed by the Malaysian public.

“The government has no business supporting a company which is not a GLC, not a statutory body, and not owned by the nation.

“Why is Najib advisor to such a company and why is the government supporting it so much?”

In the end, he adds, because of the “negligence and stupidity of the Finance Minister”, the people have been cheated.

“The list of these rogues is not complete until a detailed investigation is carried out,” he says.

“They created the fiction through false statements and accounts that PetroSaudi has oil wells in Turkmenistan and other places.”

He alleges that 1MDB was set up as a shell company to siphon off public funds. “When entering into a joint-venture with PetroSaudi, 1MDB invested USD1 billion, all of which ended up in an account controlled by Jho Low. This is an outright case of embezzlement.”

He asks: How did a USD1 billion investment by 1MDB turn into a debt to PetroSaudi, another shell company? He insists that legal action be taken.

The bottom line, Ariff says, is that there has been collusion between those in power and the other players. “Without the support of those in power, this financial scandal would not have happened.”

He says it’s important for the people to take note that the 1MDB CEO cannot on his own accord approve the release of USD1 billion for whatever purpose without the sanction of the board. “This means all the directors indulged in wrongdoing.”

Ariff says he hopes the board will not say they were acting under someone’s direction “because the only person who can give directives is 1MDB’s chief adviser, the PM himself.”

If these things had happened in China, he says, the wrongdoers would be lined up and shot. “In North Korea, they would be killed by anti-aircraft guns.”

Ariff also mentions 1MDB’s first bond issue of RM5 billion for 30 years with a coupon value of 5.75 per cent. “Was this exercise approved by the board?” he asks.

“If the Cabinet does not know, it must have been Najib as Finance Minister who made the decision. He must be held responsible.”

The government’s guarantee, he stresses, is not the guarantee of Umno or Barisan Nasional, but the Malaysian public’s guarantee. “If 1MDB is unable to pay up amounts taken under the bond, the government would have to pay instead, since it’s guaranteed by it. It’s the people’s money.”