PKR has questioned the RM7 billion said to have been transferred by 1Malaysia Development Bhd’s (1MDB) to an allegedly “secret account” in the Cayman Islands.

The information was revealed in 1MDB’s annual report and also questioned in a report in the business weekly The Edge , said PKR strategic director Rafizi Ramli.

NONE “(Incumbent Prime Minister) Najib Razak needs to answer immediately on the RM7 billion transfer, as he has full authority over 1MDB,” he said in a statement today.

According to Rafizi ( right ), 1MDB had raised RM5 billion through government-guaranteed bonds for several investment ventures, for example Petro Saudi International (PSI) whose activities and origins he alleged were “dubious”.

“From business dealings with PSI that has been shrouded in mystery, RM7 bilion is reported to have been transferred to a secret account in the Cayman Islands,” he said.

Rafizi said the transaction “went against principles of transparency and best practices that ought to be observed by a government investment body like 1MDB”.

“I fear that should BN lose in the coming general election, the RM7 bilion will disappear without a trace, meaning the government would have to bear the loss for the RM5 billion bond by 1MDB.”

NONE He added that BN politicians and its associates had been identified as holding offshore accounts , including former PM Dr Mahathir Mohamad’s son Mirzan Mahathir, incumbent Federal Territories Minister Raja Nong Chik ( left ) and a Umno-linked businessman Michael Chia.

“Secret offshore accounts are only used for dealings that need to be hidden from view, because such countries have laws that protect businesses even if there are elements of crime or corruption,” he said.

Rafizi, who is PKR’s candidate for the Pandan parliamentary seat, said he plans to lodge a report with the police and the Malaysian Anti-Corruption Commission (MACC) tomorrow and Thursday respectively.

He has called for the funds to be returned to Malaysia immediately and for the parties responsible to be "brought to justice".

RM7 billion is safe

Later today, 1MDB says the US$2.3 billion (RM7.1 billion) fund as stated in its audited accounts is safe.

According to Bernama , 1MDB in a statement said these are proceeds and profits originating from its initial 1MDB-PetroSaudi International joint venture.

"This fact is clearly reported in the company’s audited account that is publicly available from the Companies Commission of Malaysia and has been independently audited by a global reputable and established firm," it was quoted as saying.

1MDB also brushed aside allegations that these monies were put in Cayman Islands companies and will vanish, saying they are baseless and an election ploy.

"1MDB has earmarked the proceeds for investments in the near future.

"Pending that, these funds for cash management purposes are currently placed under regulated and licensed international fund managers managing Cayman Island based international standard fund structures," the company said.

It also expressed regret that "certain quarters with political agendas have hidden facts to persistently make baseless allegations".

"This is a smear campaign for their own intended benefit," it said.

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