AGC should begin criminal prosecution against 1MDB, says Guan Eng

GEORGE TOWN: The Attorney-General's Chambers (AGC) should begin criminal prosecution over 1Malaysia Development Berhad's debt of nearly RM42 billion.
Commenting on Bank Negara Malaysia's (BNM) statement yesterday, Penang chief minister and DAP secretary-general Lim Guan Eng (pix) said there is a need to probe into the scandal to restore the confidence of the public and also international investors.
"The Malay Rulers and BNM has urged AGC to take action against those who were involved or responsible for the scandal.
"We feel that AGC must come out and explain this matter not only to the Malay Rulers but also the public because it involves billions of dollars. It is a serious matter and we do not know how much money have been backtracked to Malaysia," he said, after officiating Penang Accelerator For Creative, Analytics and Technology (@CAT) at Wisma Yeap Chor Ee, Weld Quay here today.
Lim said that the AGC's statement is not enough to convince and satisfy Malaysians' concerns and doubts over the matter by stating that there was no criminal element involved.
"If AGC does not probe into the matter, there would be no public confidence due to the lack of public accountability," he explained, adding that the future of Ringgit would also be affected if fundamental issues were not resolved.
According to the press statement issued yesterday by BNM, it had recommended the AG to initiate criminal prosecution against 1MDB for breaches under the Exchange Control Act 1953 (ECA).
Their investigations found that permissions required under the ECA for 1MDB's investments abroad were obtained based on inaccurate or without complete disclosure of material information relevant to the bank's assessment of 1MDB's applications.
BNM governor Tan Sri Zeti Akhtar Aziz had earlier said that it would only be able to reveal details of its investigations if questioned by the Public Accounts Committee.
Under the Federal Constitution, the decision to initiate criminal prosecution lies solely with the AG, and the AG said on Thursday it had decided not to start such proceeding.
As a result of the central bank's investigations, it had revoked three permissions granted to 1MDB under the ECA for investments abroad totalling US$1.83 billion (RM7.55 billion).
BNM also issued a direction under the Financial Services Act 2013 to 1MDB to repatriate the amount of US$1.83 billion to Malaysia and submit a plan to the bank for this purpose.
"As an investigative authority, the bank is duty bound to conduct its investigations with the highest professional care and diligence. The bank at all times expects full and accurate disclosure of information by applicants in considering any application under the ECA.
"On its part, the bank concluded that permissions required under the ECA for 1MDB's investments abroad were obtained based on inaccurate or without complete disclosure of material information relevant to the bank's assessment of 1MDB's applications," BNM said.
BNM said it will continue to extend its full cooperation to ongoing investigations by the Royal Malaysia Police and the Malaysia Anti-Corruption Commission.