FREE There appears to be yet another possible conflict of interest in 1MDB as a member of its board is also the chairperson of Takaful Malaysia Bhd, which had purchased RM85 million in Islamic bonds from the debt-ridden company.

DAP's Bukit Bendera Zairil Khir Johari said Takaful Malaysia chairperson Ismee Ismail became a board member of 1MDB on March 23, 2009, while the Islamic bond issue took place in May of the same year.

However, Zairil noted that Ismee ( left ) was only appointed as Takaful Malaysia's chairperson in July 2009.

"Even if Ismee’s appointment as chairperson of Takaful Malaysia took place a few months after the Islamic bond purchase, the fact remains that Takaful Malaysia is controlled by BIMB Holdings via a 60.31 percent equity stake, while BIMB Holdings itself is owned and controlled by Lembaga Tabung Haji, of which Ismee has been CEO and group managing director since 2006.

"In other words, the buck stops at Ismee,"Zairil said.

He said this situation was similar to the Tabung Haji controversy, where the pilgrimage fund had purchased a parcel of land from 1MDB for RM188.5 million in what has been alleged as a bid to help the cash-strapped state investment fund, which has a massive debt of RM42 billion.

Ismee is also the chief executive officer and group managing director of Tabung Haji.

‘Too many coincidences’

"There appears to be too many coincidents. It certainly seems that wherever Ismee goes, 1MDB’s interests will prevail.

"As such, Ismee should immediately come clean on his role in Takaful Malaysia’s RM85 million 1MDB sukuk purchase, as well as the RM188 million Tabung Haji-1MDB land deal.

“Whose interests influence his decision-making and where does his loyalties lie?" Zairil asked.

He also dismissed Takaful Malaysia's claim that it had purchased the bonds from 1MDB's predecessor, Terengganu Investment Authority, pointing out that 1MDB was already incorporated in January 2009.

"In the name of transparency and public interest, Takaful Malaysia should also reveal the full details of the RM85 million bond purchase, including the price paid for every ringgit of bond purchased and whether the purchase was made directly or through the secondary market.

"In light of the many questionable deals between 1MDB and other government-linked companies and funds, the government should halt all transactions with the troubled sovereign fund until public confidence is suitably restored.

"Failure to do so would cast serious doubts on corporate governance in Malaysia, which would not only affect domestic confidence but also our country’s sovereign ratings," he said.

PAS: Gov’t posed to bail out?

Meanwhile, PAS vice-president Tuan Ibrahim Tuan Man praised Takaful Malaysia for coming clean on its investment in 1MDB.

Previously, Tabung Haji also admitted to investing RM920.8 million in sukuk issued by 1MDB's Bandar Malaysia project.

However, Tuan Ibrahim ( left ) raised concerns that 1MDB may not be able to provide the promised return as it struggled to repay its massive debts.

"Are Tabung Haji and Takaful not worried about their investments in 1MDB's sukuk?

"Or is it because the government has guaranteed the sukuk if 1MDB is unable to pay up?

"If that is the case, the rakyat should be concerned because in the end, they are the ones who have to pay for it through various taxes imposed on them," Tuan Ibrahim said in a statement today.

Tuan Ibrahim also backed CIMB chairperson Nazir Razak, who is Prime Minister Najib Abdul Razak's brother, for urging 1MDB's board of directors to resign.

"PAS also urges the prime minister to immediately resign as the adviser of 1MDB and as finance minister, before the auditor-general completes the audit report on 1MDB," he said.

This is to avoid any conflict of interest, as it would be akin to an accused instructing an investigation on himself, Tuan Ibrahim added.