1MDB had failings but problems were amplified, Najib tells investors

Updated 6 years ago · Published on 23 Jan 2018 2:56PM · 7 Comments

Prime Minister Najib Razak has admitted to investors that there were failings in 1MDB but said these were amplified by certain parties to gain political mileage. – The Malaysian Insight pic by Najjua Zulkefli, January 23, 2018.

PUTRAJAYA was aware of 1Malaysia Development Bhd (1MDB)’s failings but these were hyped up and used as political ammunition against the government, Prime Minister Najib Razak told investors today.

“Now, I am not going to brush over this issue. There were indeed failings at the company, there were lapses of governance. There was valid cause for concern,” he said in his speech at Invest Malaysia 2018 in Kuala Lumpur.

“This is why I ordered one of the most comprehensive and detailed investigations in Malaysia’s corporate history, one that involved multiple lawful authorities, including a bipartisan parliamentary body. Their findings were taken on board – and the company’s board was dissolved, its management team changed, and its operations reviewed.”

But the prime minister, who started 1MDB and was chairman of its advisory board for a period, also said that 1MDB was targeted to boost claims that Malaysia’s economy was suffering.

“Within Malaysia, there was a concentrated campaign to sabotage our economy for political gain. Challenges at certain state-owned institutions, and you will all know I am referring to 1MDB, were amplified and used as a tool to suggest that our economy was collapsing.”

At last year’s Invest Malaysia gathering, Najib had also made the same remarks, acknowledging “lapses in judgement” at 1MDB but stressing the government’s move to conduct investigations.

Today, he reiterated Putrajaya’s moves to direct 1MDB to address its problems, such as the rationalisation exercise to reduce its debts and ensuring that its Bandar Malaysia and Tun Razak Exchange project remained attractive investments.

Najib has denied allegations of his role in corruption at 1MDB and siphoning of funds from the state investor and resisted calls to step down.

In 2016, The US Department of Justice (DoJ) said that about about US$731 million (RM3 billion) in siphoned funds had found its way into the personal accounts of Malaysian Official No. 1 (MO1).

The DoJ did not name Najib but MO1 was later confirmed to be the prime minister by Minister in the Prime Minister’s Department Abdul Rahman Dahlan.

The DoJ had also filed civil forfeiture suits over more than US$1 billion (RM4.3 billion) in real estate, movie rights and other assets. It then launched a criminal investigation last year and sought to delay the civil suits filed.

US attorney-general Jeff Sessions has called the 1MDB scandal “kleptocracy at its worst”. – January 23, 2018.

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Comments

  • REALLY?? What about Felda getting back Jalan Semarak land? How is it possible Felda get back land so quickly that is ALREADY LAUNCHED AND SOLD SO SIMPLY? What were the terms of the transfer? What about strata units already sold? What about the money of units already sold?

    Posted 6 years ago by Bigjoe Lam · Reply

    • no comment

      Posted 6 years ago by Mohanarajan murugeson · Reply

  • Lapse of governance? Amplified for political gains? Isn't 1MDB created as a sovereign fund to assist in developing our country? And various national assets are injected into it to help fund these developments? Well, up to now, I don't see any national development. All I see are massive debts that our nation is scrambling to repay. Where did the huge loans that are secured by our national assets go? Up to now, not one person was being investigated by these lapse of governance, let alone charged. Can our government, please explain?

    Posted 6 years ago by HC Lung · Reply

  • “This is why I ordered one of the most comprehensive and detailed investigations in Malaysia’s corporate history, one that involved multiple lawful authorities, including a bipartisan parliamentary body. Their findings were taken on board – and the company’s board was dissolved, its management team changed, and its operations reviewed.”

    Mr. PM.... wow!!!!! lots of hot air somemore can claim --"lapses of governance". Ironically who is in the government that scheme up the 1MDB which resulted in collossal losses and damages , creating a severe dominoes effect dragging down the country other economic organisations and financial institutions. Oh yea not forgeting you are also heading the Finance Ministry and shamelessly an advisory Chairman in the 1MDB board for a period. Your speeches are high sounding but a very prevailing fake articulation is being observed in the reasons for the failure and arrogantly concluding with just a passing phrase--- "a lapses in judgement" which denotes a lack of sincerity to dwell deep into the issues. True !!! you can not just brush over this issues. The magnitude of this scandals is no more a small ripple effect as can be seen by endless stream of exposures on mismanaged GLCs all over the nations with direct or indirect linkage to your hot and saucy 1MDB. A failure is a failure no matter small or big except the bigger the failure the bigger the magnitude and heavier the responsibilities thats needs to be fully accountable. Stop your thousands of excuses and just give the nation one single solution. Be it your resignation or face DOJ to salvage the nation pride again. And that we salute you !!!!!!!!!!!!!!!

    Posted 6 years ago by Lee Lee · Reply

  • PM Najib, you are spitting out a lot of hogwash to hide the greatest theft of public funds in the history of the country, for which, you are principally and personally responsible.
    RM50 billion were lost mainly through frauds and embezzlement from 1MDB, and every major financial dealing of 1MDB required your personal written approval.
    The US government called it the largest kleptocracy case it has handled, and described it as “the worst of its kind.”
    Its culprits are being criminally pursued by more than half a dozen countries, but in Malaysia, the crimes are completely swept under the carpet. No criminal has ever been pursued, not to mention arrested and convicted.
    The full force of law will bear on this heinous crime when Harapan takes over the rein of power come next election.

    Posted 6 years ago by Kim quek · Reply

    • When DOJ described this as the biggest kleptocracy in the history, it was not meant to be a compliment. And they were not the only nation to investigate this. The others e.g. Spore, Switzerland, UK, HK, Tec have all done due process on this. Why would they want to get involved when it is of no biz of theirs? The answer lies in money laundering which is a crime into itself. Bugis PM do the right thing and resign.

      Posted 6 years ago by Brandy henderson · Reply

  • Years ago, was it before 2013, A loan was taken out by 1MDB in USA to enter into joint venture with IPIC (PetroSaudi International). USD 3.5 billion was sent to IPIC by 1MDB as its share of the capital in the joint venture. The sum was of course approved by 1MDB board, and money was wired to IPIC's British Virgin Islands account. A year or so later IPIC claimed that 1MDB had not paid its share of the capital, USD 3.5 billion to IPIC. 1MDB certainly contested IPIC's claim that it had not received USD 3.5 billion which 1MDB wired to IPIC at BVI. So 1MDB and IPIC entered into 'discussion' at an arbitration commission in London to settle the dispute. It was determined that IPIC had not been paid, and 1MDB has to make good the payment plus interest. So the money USD 3.5 billion sent to BVI did not go to IPIC, but to an account looks like IPIC, and 1MDB should pursue the matter to recover the USD 3.5 billion.

    GANTI took up a court case against 1MDB to ask how 1MDB finance the payment as demanded by IPIC. Najib's lawyer argued that GANTI has no local standi to file the case. The judge allowed the case to proceed. Actually GANTI has given Najib an opportunity to tell them and us Malaysians of what have happened to the money wrongly sent to an account that looks like IPIC but not the real IPIC. Certainly Malaysians will not agree to give the USD 3.5 billion as a gift to the BVI account holder, and not to take action to recover it.

    Posted 6 years ago by Meng Kow Loh · Reply