Hornbill Unleashed

March 14, 2015

Audit of 1MDB not enough, get the cops involved too, says Dr Mahathir

Filed under: Politics — Hornbill Unleashed @ 8:00 AM

Tun Dr Mahathir Mohamad says there should be a police forensic investigation into the allegations involving troubled state-owned firm 1MDB. – The Malaysian Insider file pic, March 13, 2015.

There is a need for a police forensic investigation into the allegations against those linked to the controversial 1Malaysia Development Berhad (1MDB), said former prime minister Tun Dr Mahathir Mohamad today, adding that a mere audit is not enough.

“An audit of its financials by the Auditor-General as ordered by Putrajaya earlier this week is not enough to uncover the truth behind the debt-ridden state investment vehicle.

“What is needed is more than the normal audit of the account books. What is needed is a forensic investigation by the police on the accusations made against several people who are involved in managing 1MDB’s finances,” he said in a blog posting today.

He added that if this was not done soon, the people’s support for Barisan Nasional (BN) would continue to fall.

“And when this happens, there is a strong possibility that BN will lose the general election in 2018,” Dr Mahathir said.

Last Wednesday, Prime Minister Datuk Seri Najib Razak ordered the Auditor-General (A-G) to “independently verify 1MDB’s accounts”, with the findings to be passed on to the Public Accounts Committee (PAC).

A-G Tan Sri Ambrin Buang told the press that the national auditor’s inspection of 1MDB’s account had started, but did not set a time frame to complete the audit.

Dr Mahathir, however, said that appointing the A-G to audit 1MDB’s books would not answer many questions posed by the people.

“The allegations made against 1MDB are not rash accusations. It comes with clear facts, that is the amount of debts, who are managing them, who received billions of ringgit, the investments made, where the money is being kept and in what form.

“1MDB had not amassed regular debts like the government’s which is just hundreds of millions. 1MDB has billions of ringgit in debt. Although it is not government, it is wholly-owned by the government.

“So the government cannot claim that it is the company’s problem and not theirs,” Dr Mahathir said in a scathing post about 1MDB today.

He warned the BN-led federal government that if the police investigation is not done soon, the coalition could lose the next general election.

“There is a huge possibility that BN will lose in 2018, despite the fact that all Umno leaders have expressed support, accepted and are satisfied with the explanations given,” he said, referring to the gathering by Umno division chiefs to show their support for Najib last weekend.

All 160 of the 191 division chiefs who showed up at the meeting with Najib said they were confident with his handling of the 1MDB issue, that has taken prominence after criticism from Dr Mahathir in recent months.

The Malaysian Insider had reported that Najib had quelled whatever internal dissent brewing over 1MDB, which the opposition claimed could dent the country’s finances if the government-owned company defaults on its mountain of debt.

Those who attended the meeting were reported as saying that they were satisfied with Najib’s explanation of 1MDB, the audit reports on its accounts and the company’s finances.

The former prime minister said that he did not know how Najib had explained the controversies surrounding 1MDB, but noted that the allegations should not be dismissed just because they were highlighted by the opposition.

“The explanation that it is mere slander because it was highlighted by the opposition is not enough for the people to reject these allegations.

“The people are still dissatisfied with 1MDB. They talk about it everywhere. And if they are not happy, they might not vote for BN in the next GE and if BN is rejected, there is no meaning to the support expressed by Umno leaders towards their president.

“Remember, the votes of Umno members alone are not enough to win the elections,” he said.

1 Comment »

  1. Malaysians must never forget that under former prime minister Tun Dr Mahathir there were monetary losses amounting to tens of billions of ringgit unaccounted for, and irretrievable.

    These include:
    •Forex scandal in early 90s : RM30 billion
    •The Perwaja Steel Scandal : RM10 billion
    •Bank Bumi scandal: RM10 billion
    •Maminco-Makuwasa Affair RM1.6 Billion
    •Mahathir used Petronas as a ‘bank’ to bail out many companies, banks etc.

    Opposition politician Syed Husin Ali said, “Petronas has neither been fully transparent nor accountable with how it spends its money, especially in aiding and abetting Tun Mahathir to indulge in unproductive construction of mega projects, to bail out ailing crony companies and corporate figures, and to involve [itself]in excessive and wasteful spending on celebrations and conferences.”
    •Mahathir used his position to bail out his children or to give them special benefits.

    Konsortium Perkapalan

    In early 1998, Petronas acquired a debt-laden shipping concern controlled by Mahathir’s eldest son Mirzan Mahathir’s Konsortium Perkapalan for RM 226 million and assumed its debts of more than 324 million, according to Far Eastern Economic Review stating the debt at RM 1.6 billion.

    Sapura-Kenaca Petroleum

    In early November 2012, Petronas Carigali Sdn Bhd reportedly awarded a RM700 million contract to a Sapura-Kencana Petroleum Bhd wholly-owned subsidiary where Mahathir’s son Mokhzani is a vice-chairperson.

    Mahathir replied in a sarcastic tone when asked during a press conference whether there was conflict of interest in the deal.

    “Yes of course, he (Mokhzani) is given it because I instructed Petronas. Put that in your paper. I presided over everything. I told them, please give to my son and not to anybody else. That’s what I have been doing all the time. When I was the prime minister, everything was given to my children. But when everything goes to the children of the other Prime Minister, you don’t want to mention because he is a nice man. He enables you to read, doesn’t he?” Mahathir said in reply.

    Can Mahathir explain and repay all the above losses?

    In sharp contrast, 1MDB is facing a cash flow situation but has strong assets.

    When president of Umno, Mahathir introduced a quota system for party elections to ensure he was not challenged. Now he is telling Umno members to remove the PM.

    When he was PM, he was infamous for using the ISA jailing opposition. Can you ever forget Ops Lallang I and II?

    Has the current regime done that? No.

    Tun Dr Mahathir could never be criticised by anyone, not even Soros. Today, old and filthy rich, he wants to criticize and remove Najib who has silently endured all attacks and is ready to be transparent.

    Malaysians seem to have forgotten how ‘wonderful’ Malaysia was under TDM and are sharpening claws to attack Najib whom, thanks to the TDM media psywar, is perceived as the bad guy when actually the worst villain ever to have walked Malaysia is TDM!

    Comment by Nurfa — March 14, 2015 @ 1:55 PM | Reply

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