Najib: PAC report proves Dr M wrong about 1MDB

(MMO) – Prime Minister Datuk Seri Najib Razak said today that the Public Accounts Committee’s (PAC) report on 1Malaysia Development Berhad (1MDB) successfully disproved Tun Dr Mahathir Mohamad’s allegations against the firm.

In a statement, Najib said the report tabled to the Dewan Rakyat today shows that RM42 billion had not gone “missing” from 1MDB as alleged by the former prime minister.

“It is now clear that Tun Mahathir’s allegations against 1MDB have been false. He was motivated by personal interest, not the national interest, and a desire to unseat the government,” the prime minister said.

Najib acknowledged, however, that the PAC report had identified weaknesses in 1MDB’s capital structure and management, and said the government will look into the parliamentary panel’s recommendations.

He said the government will also take action where necessary, particularly if any wrongdoing is found.

“We must ensure that lessons are learned, and action will be taken if any evidence of wrongdoing is found,” he said.

“We will continue to focus on our economic plan and strengthening the economy — which has continued to show resilience in the face of global challenges,” he added.

The prime minister also thanked the National Audit Department (NAD) and the PAC for producing their respective reports on 1MDB.

Earlier today, the PAC chairman Datuk Hasan Arifin urged the authorities to scrutinise the  1MDB report and take the necessary legal action if any wrongdoing is found.

Hasan said that the committee’s findings were based on a recent report prepared by the NAD, and was in line with the Cabinet’s directive for the PAC to scrutinise 1MDB’s audit report and to investigate any issues involving the firm’s management of funds.

The PAC in its report released today urged the authorities to investigate former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi over weaknesses in the company’s management.

In the report, the panel said 1MDB’s board of directors failed in their responsibilities to the company and its shareholders by allowing its management to make decisions that were not in line with good accounting practices.

1MDB is currently under probe by the authorities in several countries, with Luxembourg the latest to investigate the state investment firm for alleged money laundering.