Bank Negara Malaysia purportedly fined 1MDB and other related entities a sum of RM115.8 million for non-compliance with the Financial Services Act.

Pakatan Harapan president Dr Wan Azizah Wan Ismail disclosed this, citing a letter received yesterday from the central bank's legal adviser.

The central bank was responding to a memorandum Pakatan Harapan MPs had sent to Bank Negara urging it to reopen its investigation into the 1MDB scandal.

"Logically, Bank Negara had fined 1MDB up to RM115.8 million, that means many laws were breached.

"Obviously breaching the laws were made under someone's instructions as 1MDB is not the kind of entity that acts on its own," Wan Azizah said in a press conference at the PKR headquarters today.

She added that with action taken under Section 234(3)(b) of the Financial Services Act to fine 1MDB, action must also be taken under Section 234(5) against the individual who was responsible for giving said instructions.

While Wan Azizah mentioned that 1MDB and other related entities were fined up to RM115.8 million, the letter by Bank Negara had only stated that “related entities” were fined up to RM115.8 in compounds and administrative penalties from 2015 to June this year.

Bank Negara is empowered under Section 234(3)(b) of the Act to impose a monetary penalty not exceeding five million ringgit in the case of a breach that is committed by a corporate or unincorporated body, or one million ringgit in the case of a breach that is committed by an individual.

Under Section 234(5), action can be taken if a breach is committed by a corporate or unincorporated body. This includes its director, controller, officer or partner, or one who is concerned in the management of its affairs.

Meanwhile, Wan Azizah said that taking action against 1MDB under section 234(3)(b) of the Financial Services Act was the same as compounding Malaysians.

"This is because it is Malaysians who have to bear all debts and compounds made against 1MDB."

From the RM115.8 million in fines, citing AmBank Group which was slapped with an RM53.7 million fine in 2015, for contravening the Financial Services Act and Islamic Financial Services Act, Wan Azizah wonders whether the balance of RM62.1 million has been paid.

"If so, who paid for it? If 1MDB or entities related to 1MDB paid for it, this means that apart from being victims of the misappropriation of 1MDB funds, Malaysians must also bear the fine imposed on 1MDB."

Wan Azizah also confirmed that she will be lodging a police report next week to enable Bank Negara to investigate Prime Minister Najib Abdul Razak who heads the 1MDB advisory board, as well as previous and current 1MDB board of directors and its top management.

She also pointed out how Article 117 of 1MDB's memorandum and articles of association states that Najib's written permission is required in any financial commitment.

"I hope the Bank Negara management will not give excuses in this issue. If the Bank Negara management does not dare to take action against Najib, it should at least take action against the 1MDB board of directors and its management," she said.

Meanwhile, DAP lawmaker Liew Chin Tong who was also present at the press conference today, said several Harapan leaders plan to meet the governor (Muhammad Ibrahim) as a lot of facts have yet to be disclosed.

'He needs to give further explanation on this matter," he said.

On April 28, 2016, Bank Negara issued an administrative fine on 1MDB for failing to adhere to the Financial Services Act 2013. The state fund was given until May 30, 2016, to pay the fine.

About two weeks after the fine was issued, Muhammad said Bank Negara had ended its investigations into 1MDB's affairs as 1MDB has stated its commitment to pay the fine before the deadline.