1MDB probe as good as dead, says Transparency International

Transparency-International Malaysia believes the investigation into 1Malaysia Development Berhad lacks governance, integrity, and submission to the rule of law. – AFP file pic, July 30, 2015.

Recent events in the past few weeks, including the slow 1Malaysia Development Berhad (1MDB) investigation process and sackings of government officials, can leave Malaysians feeling like there is a concerted effort to stop the ongoing probe on the state investment vehicle, says Transparency-International Malaysia (TI-M).

Saying that the ongoing investigations is as good as dead, its president Datuk Akhbar Satar added that the entire 1MDB scandal had so far displayed a complete lack of governance, integrity and submission to the rule of law.

"Given the snail pace of the investigations and halting of PAC activities coupled with the sackings on July 29, how will intelligent Malaysians view the whole episode? Surely they will think it is clearly a concerted effort to stop the probe into 1MDB in its tracks.

"This is coupled with a newspaper which had aggressively exposed issues concerning 1MDB being muzzled with a suspension. Promise of no blockage to the internet was also broken.

"As far as TI-M is concerned, the probe is as good as 'hidup segan mati tak mahu' or even dead while some small fish are being hauled up," he said in a strongly worded statement today.

In a series of shocking moves, Putrajaya replaced Tan Sri Abdul Gani Patail as the attorney-general, citing his poor health, despite him being part of a high-powered task force to probe into 1MDB's operations and alleged financial irregularities including claims by The Wall Street Journal early this month that Prime Minister Datuk Seri Najib Razak had billions channelled into his personal accounts.

The government also did not extend the services of the Special Branch chief at Bukit Aman and, more shockingly, Najib sacked his deputy Tan Sri Muhyiddin Yassin from government as part of his cabinet reshuffle, which many believed were due to the latter's criticism against 1MDB.

The cabinet reshuffle also saw four members from Public Accounts Committee (PAC), which is also currently probing 1MDB's operations, appointed as ministers and deputy ministers, raising questions as to whether the bipartisan committee can continue with its current inquiry into the firm as the next proceeding is scheduled to take place next week.

Critics have accused Putrajaya of muzzling dissent, the latest being blocking access to whistleblower site Sarawak Report and suspending The Edge Media Group's business publications for three months.

Both have been publishing critical reports on 1MDB detailing its alleged financial improprieties.

Akhbar questioned whether Malaysians could hope to see the perpetrators of 1MDB brought to justice since Gani was replaced by a new, inexperienced A-G who is a "political appointee" and not part of the high-powered special task force.

"Continuity has definitely been disrupted by events on 29 July 2015 and why is it happening?" he asked.

He also noted that the numerous task forces formed since March to probe 1MDB do not seem to have concluded their investigations.

"Is this due to the enormous scope of the investigations, incompetency or is there something to hide that we are witnessing here?"

Besides the special task force headed by the Inspector-General of Police, The Attorney-General, Bank Negara governor and the Malaysian Anti Corruption Commissioner chief commissioner, the PAC is also looking into 1MDB.

Additionally, in March, Putrajaya announced that a special task force, comprising the Second Finance Minister, Minister in the Prime Minister's Department; Chief Secretary to the Government and Treasury Secretary-General, would be set up to investigate troubled state investor, which has accumulated RM42 billion debts in just six years of operations.

Separately, Bank Negara is also probing 1MDB to see if it had secured the appropriate permission for offshore borrowings and foreign investments, while the Auditor-General is looking through the company's books.

"Given the number of parties involved in the investigations, this is truly the mother of all scandals with 'so much to hide'," Akhbar said.

He said Malaysia must be a nation that cares about what is right and wrong and not a nation where “might is right”.

"We are dangerously close to being a 'failed state' and almost overnight destroying all that our nation’s  forefathers sought to build with great toil and sacrifice.  We cannot let this happen - God and our future generations will not forgive us," he warned.

- TMI