DEPUTY Rural and Regional Development Minister R. Sivarasa today said that Bank Negara Malaysia (BNM) had failed its duties in not taking any action against corruption in 1Malaysia Development Bhd (1MDB).

“The institutions failed. Bank Negara failed. Bank Negara knew about it. Every time money moves Bank Negara knows,” he said.

The 1MDB scandal is currently being investigated by a task force led by former attorney-general Abdul Gani Patail.

Former prime minister Najib Razak has been charged in connection with alleged corruption and abuse of power related to one of 1MDB’s subsidiaries, SRC International Sdn Bhd.

Sivarasa was speaking today at the International Malaysia Law Conference on the issue of 1MDB and kleptocracy, and insisted that institutions had let Malaysia down in their investigations.

The former PKR vice-president said reform was needed in order to prevent a repeat of 1MDB, and suggested that the new Pakatan Harapan government could work towards this.

“What the new government is committed to doing is freedom of information laws and a review of the Official Secrets Act, so that if there is a scandal happening, the media will get the information,” he said.

The deputy minister also suggested that the appointment of key positions such as the attorney-general and the head of the MACC would, in the future, be carried out through parliamentary review.

“The process of appointment of all key appointments will be done through a parliamentary process,” said Sivarasa.

The appointment of senior positions going through a process of parliamentary review was one of the promises made by PH in their election manifesto.

Sivarasa also said he supported a call from activist Siti Kassim, who also attended the conference, to increase the wages of lower-ranking public servants to reduce corruption.

“Personally I totally agree, it is good to discourage corruption (by increasing salaries). Unfortunately, I don’t know whether my views are shared by the cabinet, where decision-making is done, the prime minister himself seems to have a different view,” he said. – August 17, 2018.