Malaysia
Will the outgoing 1MDB board members be made Najib’s scapegoats? asks PAS MP
A man walks past a 1 Malaysia Development Berhad (1MDB) billboard at the funds flagship Tun Razak Exchange development in Kuala Lumpur, in this March 1, 2015 file photo. u00e2u20acu201d Reuters pic

KUALA LUMPUR, June 9 — A PAS lawmaker suggested today that the board members of debt-laden 1Malaysia Development Bhd (1MDB) will be made scapegoats for Prime Minister Datuk Seri Najib Razak if the claim that they will resign en bloc next month is true.

Kuala Terengganu MP Datuk Raja Kamarul Bahrin Shah Raja Ahmad alleged that the delayed claim that Najib had no say in the contentious US$1.9 billion (RM7.151 billion) loan deal with Petrosaudi International Limited was a clear indication of an intention to divert blame from the prime minister.

“What took them so long to make the declaration? It has been many months of turmoil before such an important announcement was made… anyhow does this clear Datuk Najib since he is also the special advisor of 1MDB as well as minister of finance and prime minister?” Raja Kamarul Bahrin asked at a press conference in Parliament here.

He noted that the “leaked” memorandum of agreement of the Terengganu Investment Authority, the entity that was later federalised into 1MDB, indicated that Najib has the last say in all crucial deals done by the troubled fund.

“So are the board of directors to be made the fall guys for Datuk Najib’s misadventures? They are all resigning soon anyway,” Raja Kamarul Bahrin added.

Yesterday, business daily The Edge Financial Daily reported that the board of 1MDB will likely be made to step down as early as next month, quoting sources describing the move as a prelude to wind down the troubled investment firm.

Sources told the local business daily that the quit plan may also include those in 1MDB’s advisory board, which Najib heads.

Raja Kamarul Bahrin said it would be misleading to assume that all the controversial decisions made by the troubled fund came from a board, which comprises senior and experienced directors.

He pointed out TIA’s business decisions and dealings could not have been made possible if not for a strong backing.

This included revelation that the TIA had wanted to collateralise Terengganu oil fields for a RM5 billion loan, which it also secured despite having no physical assets or projects.

“Unless some powerful figure had exerted their political influence perhaps through the Minister of Finance (sic) where Datuk Najib is the minister,” the PAS leader commented.

Recently, several media organisations reported the contents of TIA’s Memorandum of Articles and Association Agreement (M&A), which includes a clause that says the prime minister has the final say in all the firm’s deals.

Najib or 1MDB have yet to comment on the matter.

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