Prime Minister Najib Abdul Razak must testify before the Public Accounts Committee (PAC) in light of revelations that controversial financial deals by 1Malaysia Development Berhad (1MDB) were likely made with his consent, said PKR vice-president Rafizi Ramli.

 

This is after Malaysiakini yesterday revealed that the memorandum and articles of association (M&A) of Terengganu Investment Authority (TIA), the predecessor of 1MDB, required all deals to be approved by the prime minister.

 

"It is quite clear now that he would have been in the know. It (Najib’s testimony) will clear any doubt whether or not he knows there is mismanagement in 1MDB.

 

"I think it is best for Najib to allocate a day or two to come to Parliament and explain in light of this.

 

"He should also be questioned by the Public Accounts Committee (PAC) because it is now not just the senior management - he was part and parcel of 1MDB's transactions and would be in a position to explain," Rafizi told Malaysiakini when contacted.

 

Even though TIA had changed its name to 1MDB, Rafizi, who is Pandan MP, said he was confident that the latter inherited TIA's M&A in full, which is similar to the constitution of an association.

 

"When you change a company's name, you don't go back and change the M&A because it's the same entity.

 

"What started out as TIA obviously would have been inherited lock, stock and barrel by 1MDB and if you refer to their company numbers, they are still the same," he said.

 

Furthermore, Rafizi said some may argue that TIA was incorporated on Feb 27, 2009, before Najib became prime minister but he pointed out that the M&A was adopted on Aug 11, 2009, after Najib became prime minister in April.

 

"The incorporation of Clause 117 of the M&A was most probably done with his (Najib) knowledge and instruction," said Rafizi who is also PKR secretary-general.

 

‘The buck stops at Najib’

 

Yesterday, Malaysiakini reported that the M&A’s clause 117 spelled out that the prime minister's written approval was required for any of TIA's financial commitment, including investments, restructuring or any matters concerning federal government policy, national interest and national security.

 

Clause 117 of the M&A also states that the premier's approval was required to amend the company's M&A and appointment of company directors and senior management members.

 

If Clause 117 of the M&A remains at status quo until today, it would mean that the prime minister had given his consent to many of 1MDB's controversial deals.

 

This include the decision to move US$1.1 billion from Cayman Islands to a bank in Singapore, the deal with Mongolia-based company Gobi Coal & Energy Limited (GCE) and the sale of Tun Razak Exchange land to the Lembaga Tabung Haji, among others.

 

As such, Rafizi said he did not agree with Deputy Prime Minister Muhyiddin Yassin's calls in a closed-door Umno meeting, which video was leaked online , for the 1MDB board to be sacked.

 

"It is a collective responsibility and the buck stops at Najib when it comes to this kind of transactions by 1MDB which involved the transfer of billions and the award of government prime land cheaply to 1MDB," he said.

 

Consent is norm in GLCs

 

Rafizi, who had previously worked at Petronas, said the prime minister's consent is a norm when it comes to government-linked companies handling billions of ringgit and this was likewise the case in the oil company.

 

"If you have worked in an organisation like this, you would know that these kind of decisions can only be made at the top most level of authority.

 

"Even if it was approved by the 1MDB board, it would still require the necessary approval of the government and it would have been done with the consent and knowledge of the prime minister and minister of finance," he said.

 

Najib is also finance minister whose ministry wholly owns 1MDB, an investment company that has since accumulated a massive debt of RM42 billion.

 

1MDB president and group executive director Arul Kanda and former chief executive officer Shahrol Ibrahim Halmi were summoned to testify before the PAC on Monday but did not turn up after they asked for a 30-day extension.

                                   

The duo said they have important engagement overseas but earned scorn for not giving priority to the PAC in light of the high profile public interest issue surrounding 1MDB.

 

PAC chairperson Nur Jazlan had previously said the committee will not call Najib as yet but all eyes will be on the committee's next move in light of the latest M&A revelation.

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