KUALA LUMPUR, May 27 — PKR’s Rafizi Ramli insisted today that 1Malaysia Development Berhad’s (1MDB) Memorandum of Articles and Association Agreement (M&A) is no different from that of its precursor Terengganu Investment Authority (TIA), pointing out that even 1MDB chief executive Arul Kanda Kandasamy has not denied this.
Rafizi said that checks with the Companies Commission of Malaysia showed that 1MDB shares the same company registration number with the TIA.
“Arul’s short response saying that 1MDB’s M&A has always been public, his short response confirms this is the same M&A,” the Pandan MP told reporters.
“The number of 1MDB’s company is the same as TIA’s...1MDB inherits TIA lock, stock and barrel,” he added.
Rafizi claimed that this proves that Prime Minister Datuk Seri Najib Razak has the final say over any “financial commitment” undertaken by 1MDB.
Clause 75 of the agreement for TIA states that the management of the company and the determination of overall investment policies or decisions lies with the board of directors.
Clause 117 of the same M&A inked on February 27, 2009, also indicates that the prime minister must give his written approval for any of TIA’s deals, including the firm’s investments or any bid for restructuring.
“(Clause) 117 overrides 75 or any other Article, because while 1MDB’s board and management is responsible for day to day operations, it cannot execute any decisions without approval from the PM,” Rafizi said.
Clause 117 states that “for the avoidance of any doubt and notwithstanding anything in the (other) Articles, none of the following shall take effect without the written prior approval of the prime minister”.
1MDB was incorporated in 2009, after Prime Minister Datuk Seri Najib Razak announced the decision to turn TIA into a federal agency.
The Auditor-General and Parliament’s Public Accounts Committee are currently investigating 1MDB, a state-owned firm that has reportedly amassed debts of some RM42 billion in just six years since it was incorporated in 2009.