Pua: Why doesn't Johari care about embezzled 1MDB funds?

Petaling Jaya Utara MP Tony Pua has expressed shock over Second Finance Minister Johari Abdul Ghani's seeming lack of concern over Deloitte's move to disavow 1MDB 2013 and 2014 accounts.

"Why is Johari completely disinterested in the missing and embezzled funds? Why is there no demand from the minister for the accounts to be re-audited?" Pua asked in a statement today.

Johari said on Monday that there was no impact on 1MDB for saying its Deloitte audited 2013 and 2014 accounts should no longer be relied on.

He said this was because 1MDB has no outstanding debt with any local bank, nor would it use those accounts to apply for a bank loan.

Following the US Department of Justice’s (DOJ) civil forfeiture suit seeking to recover about US$1 billion out of US$3.5 billion that was supposedly misappropriated from 1MDB, the state investment firm said these accounts should not be relied upon as a “precautionary measure”.

This is pending a final decision from the US court regarding the lawsuit.

However 1MDB still believes that the 2013 and 2014 accounts are a true and accurate reflection of the company’s standing at the time.

Deloitte said the information contained in the DOJ's court filings would have impacted its audit, if this information were known at the time.

Pua questioned if Johari (photo) was promoted to second finance minister from his deputy minister post last month because he would do all he could to cover up any misappropriation of 1MDB funds.

The DAP lawmaker also took aim at Johari's remarks that Putrajaya was confident 1MDB would win in the US$6.5 billion arbitration case initiated by the Abu Dhabi-based International Petroleum Investment Company (IPIC) and its subsidiary Aabar Investments PJS.

"Johari’s sheer confidence is surprising, given the DOJ developments which have clearly shown 1MDB’s various key officials playing an integral role in conspiring to defraud 1MDB.

"Under such circumstances, how is 1MDB going to be able to prove to the London Arbitration Court that 1MDB is an innocent party to the massive fraud?

"Will Johari resign if the decision is found to be not in 1MDB’s favour?" Pua asked.

IPIC and Aabar took the Ministry of Finance Incorporated (MOF Inc) and 1MDB to arbitration at the London Court of International Arbitration in June.

In 2012, 1MDB transferred US$3.5 billion to Aabar BVI as part of a joint venture between 1MDB and IPIC.

However, IPIC later said Aabar BVI is not its subsidiary, and none of its subsidiaries had received the money, despite the Malaysian government’s insistence to the contrary.

This led IPIC to back out of a deal where it would assume responsibility for repaying the 1MDB debt that it co-guarantees, although it later resumed payment and filed the request for arbitration.- Mkini