Nur Jazlan: 1MDB bypassed gov’t checks, went direct to PM

PAC Former Public Accounts Committee (PAC) chairperson Nur Jazlan Mohamed reportedly said that 1MDB may have by-passed the government’s due process framework by reporting straight to Prime Minister Najib Abdul Razak.

“1MDB has their own source of authority not from the (Finance) Ministry (MOF) but directly from the prime minister, and the prime minister also as the finance minister. So they bypassed the government’s due process framework lah,” he had remarked.

This was recorded in the Hansard of the PAC’s first hearing on 1MDB dated May 19, 2015, when Nur Jazlan was still heading the committee.

He had made the observation after being told by Treasury secretary-general Irwan Serigar Abdullah and Finance Ministry Inc (MKD) chief Mohamad Isa Hussain that the Finance Ministry had no representatives on 1MDB’s board of directors.

Irwan and Mohamad Isa had also said that the Finance Ministry was in the dark on 1MDB’s operations.

“We’re sorry that the committee is asking this repeatedly, because either we’re not shocked or can’t believe this happened,” Nur Jazlan said.

To this, former BN Public Accounts Committee member Reezal Merican Naina Merican chimed in, saying “Now we’re shocked.”

Reezal also said it was absurd that the Finance Ministry had no representatives in 1MDB’s board of directors.

“There’s no Finance Ministry representative in the company. That is to me completely absurd.

“(There’s a) RM5.8 billion issued bond guaranteed by government, the rakyat’s money, why wasn’t the MOF there (on the board),” Reezal had said.

Mohamad Isa had explained that under 1MDB’s Memorandum and Articles of Association (M&A), government officers are not allowed to be on its board of directors.

Article 117 of the M&A also states that the prime minister’s approval is required to amend the document, and also to appoint directors to the board.

‘Obviously there is negligence here’

“Obviously there is negligence here when it comes to drafting the M&A,” Nur Jazlan had said after being briefed on Article 117.

At a later hearing with auditors KPMG, the Hansard records Reezal and fellow BN PAC member Abdul Aziz Sheikh Fadzir as expressing disbelief that the firm was not aware of Article 117.

“How can you say that you (are) not even aware of (Article 117) and you are saying that in extract?

“That is a very pertinent information where actually change completely to the governance of the company. How could you miss it?” Abdul Aziz had said June 17, 2015.

In the hearing, KPMG said it was aware that there was an Article 117 through an excerpt of meeting minutes.

However, it claimed not to have known the contents of Artilce 117 as the minutes were only an excerpt.

The PAC, in its report on 1MDB, did not recommend any action against Prime Minister Najib Abdul Razak.

Instead it said former CEO Shahrol Azral Halmi and others in management should be held accountable for the firm’s weaknesses -Mkini