C4: Removal of 1MDB clause does not absolve Najib

An anti-corruption NGO has argued how the removal of Article 117 from 1MDB’s memorandum and articles of association does not absolve Prime Minister Najib Abdul Razak from being responsible in the company’s transactions.

Centre to Combat Corruption and Cronyism (C4) executive director Cynthia Gabriel was responding to the Minister of Finance Incorporated (MOF Inc) which said that it has agreed for the removal of the said article.

“It does not absolve him (Najib) of responsibility of all previous signatures he had made to the transactions,” Cynthia said to reporters when met after the Bar Council’s roundtable session in Kuala Lumpur.

The human rights advocate cited the billions of funds still "missing" and US$3.5 billion paid to the bogus Aabar Investments.

“These are public money which is lost. Someone has to take responsibility and the buck stops with the prime minister and finance minister.”

The removal of Article 117 to change all references from "prime minister" to "finance minister" is, therefore, academic, said Cynthia.

“(It’s) because we're talking about the same person. The main point here is that it does not absolve him of responsibility.

“As far as C4 is concerned, we still find him completely responsible for the loss of money,” she said.

Article 117 under the 1MDB memorandum and articles of association provides for the appointment and dismissal of its top management.

Meanwhile, apart from the removal of Article 117, Cynthia pointed out how several other key recommendations needed to be addressed.

“One of the important things is the dissolution of the advisory board because it has been seen to be quite defunct,” she said.

On the auditor-general’s report on 1MDB which is still under the Official Secrets Act (OSA), Cynthia said MOF Inc, therefore, cannot make conclusive recommendations.

“That (the auditor-general’s report) has to be debated in Parliament for a more comprehensive review on measures to be taken by MOF with regard to the failures of 1MDB.”

The PAC, which tabled its 106-page report last month, had identified a number of weaknesses in the governance and decision-making of 1MDB.

It had suggested that 1MDB transfer all its assets to MOF Inc and also recommended that the 1MDB board of advisers be abolished. -Mkini