TI-M: Putting 1MDB right separate from wrongdoing

The 1MDB saga must be fully investigated, any wrongdoing or corrupt practices should be fully disclosed and wrongdoers should be brought to justice without fear or favour.

KUALA LUMPUR: There’s a real difference between helping 1MDB to get out of its current financial mess, the focus of the Executive, and bringing to justice those who have abused their power to use the finances of the government-owned company for their own ulterior motives, said Transparency International Malaysia (TI-M) in a statement.

“TI-M’s stand has been consistent that the 1MDB saga must be fully investigated, any wrongdoing or corrupt practices should be fully disclosed and wrongdoers should be brought to justice without fear or favour.”

This 1MDB probe has already taken far too long, and the trust deficit faced by the current government in the minds of the people had reached such an extent that the people no longer take seriously any statement by the current government that wrongdoings in 1MDB are being probed and investigated and will actually be resolved, added TI-M President Akhbar Satar in the statement.

TI-M was expressing grave concern on the recent arrest of sacked Umno Batu Kawan deputy divisional chief Khairuddin Abu Hassan and his lawyer Matthias Chang, and the newly appointed Attorney-General’s refusal to press charges against 1MDB officials despite two appeals from Bank Negara, and the Conference of Rulers’ statement issued by the Keeper of the Rulers’ Seal on the company among other matters.

“TI-M strongly condemns the arrest and detention of whistleblowers,” said Akhbar “Detaining them for 28 days is an abuse of power by the authorities. What has happened to all the government’s promises of non-abuse when Sosma was first introduced?”

“TI-M does not see the nexus between the objectives of the Act and the detention of Khairuddin and Matthias.”

TI-M views very seriously the lackadaisical response of the deputy prime minister on the statement from the Rulers, continued Akhbar. “His facebook status page states the probe on any party whatsoever should adhere to the rule of law, while any demand to speed up or slow down investigations should not happen.”

TI-M applauded the action taken by Bank Negara in revoking three permissions granted to 1MDB under the Exchange Control Act 1953 for investments abroad totaling USD1.83 billion and also issuing a directive under the Financial Services Act 2013 to 1MDB to repatriate the amount of USD1.83 billion to Malaysia.

“TI-M urges 1MDB officials to immediately comply with Bank Negara’s instruction,” said Akhbar. “It must be reiterated that this is not a query from Bank Negara for 1MDB to explain but it is a directive and the company must comply.”

“TI-M urges the police and the MACC to act professionally and work without fear or favour and cooperate with Bank Negara to bring the culprits if any to justice.”

If 1MDB does not comply with Bank Negara’s directives, warned TI-M, it will set a dangerous precedent where parties at fault are able to give excuses and justifications to avoid compliance.

Khairuddin and Matthias were both scheduled to leave for New York and then London on September 18. However, both were blacklisted and prohibited from leaving the country by the Immigration Department on police orders. Khairuddin was arrested and released but later rearrested under Sosma.

This was followed by Matthias’ arrest.

Khairuddin was accused of sabotaging the country after it was discovered that he lodged reports with investigators in Hong Kong, Switzerland, France and the United Kingdom over the 1MDB scandal.

Both Khairuddin and Matthias are being held under the Security Offences (Special Measures) Act 2012 (SOSMA).