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Thursday, May 28, 2015

PAC warns 1MDB of deceiving

KUALA LUMPUR - The Public Accounts Committee (PAC) warned 1 Malaysia Development Berhad (1MDB) officials today that the parliamentary committee will not pull any punches during their much anticipated hearing, especially if the state-owned fund’s representatives prove to be dishonest.

Its chairman Datuk Nur Jazlan Mohamed said the committee members tend to assume that those summoned before the PAC would attend hearings with “good intentions” to explain their side of the story.

“If there is any proof that they deceived us, our members on the PAC will not be sympathetic towards them,” he said at a news conference after chairing a committee meeting.

“[PAC committee members] are not [sympathetic] in the first place, but now we are going to be even less sympathetic to [the 1MDB officials],” he added.

The PAC was supposed to grill 1MDB chief executive Arul Kanda Kandasamy and his predecessor, Datuk Shahrol Halmi, on Tuesday but had to postpone the hearing after both men informed the committee that they were overseas and would not be able to make it.

Nur Jazlan today said he had heard allegations that both Arul and Shahrol are actually still in the country and not overseas as claimed.

“Here’s the problem with the 1MDB thing. Everybody has listened to so many allegations, innuendos and such and we don’t know whether they are true or false,” Nur Jazlan said.

“And there’s a tendency to declare some people are guilty... when they come, then we ask them lah, whether it’s true or not that they’re not in the country at the time they were supposed to see us.

“But what’s important is that we want the answers [to questions on decisions made] during their time as CEOs in the company,” he said.

Aside from the PAC, the Auditor-General is also conducting an audit on the accounts of 1MDB, which has reportedly amassed debts of some RM42 billion.

1MDB was incorporated in 2009, after Prime Minister Datuk Seri Najib Razak announced the decision to turn the Terengganu Investment Authority state fund into a federal agency.

Since then the fund has been dogged by negative publicity over its finances and debts with the most recent being the controversial land deal with Lembaga Tabung Haji.

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