Well within BNM’s powers to act independently on 1MDB, group says

KUALA LUMPUR, Oct 30 — Pressure group G25 today called for Bank Negara Malaysia (BNM) to follow through in taking action against 1Malaysia Development Berhad (1MDB) independently of the Attorney General’s Chambers (AGC).

The group of retired Malay senior civil servants stressed that BNM is empowered by the Financial Services Act to take civil action despite being denied two requests for criminal action on the state-owned fund by the AGC.

“In the interest of the country and exercising its powers fairly, Bank Negara Malaysia must indeed follow up with the necessary actions under the law,” the group said in a statement.

“Since the Bank’s action to date is within its powers to take up the civil suit, Bank Negara can therefore proceed to take actions independently without consultation or any manner of involvement of the Attorney-General,” the group added.

G25 claimed the AG currently exists in a state of conflict as it serves both as the government’s legal advisor and public prosecutor.

The group suggested that the AGC be split into two separate offices; one to handle the role of legal advisor to the government while the other should operate as an independent office under a director of prosecutions to handle cases.

The G25 added that both these roles should be subjected to new safeguards in appointments and removals by the Yang di-Pertuan Agong, on the advice of the prime minister and after consultation with the Conference of Rulers.

“In other words, the AG or the DPP should enjoy a security of tenure so that he/she could carry out his/her duties without fear or favour; and so that he could be seen to be independent and commands the public trust and confidence,” the group said.

The AGC confirmed earlier this month that it had rejected two of BNM’s recommendations for action against 1MDB after finding no wrongdoing committed by any of the state-owned firm’s officials.

1MDB was ordered by BNM to repatriate funds amounting to US$1.83 billion (RM7.87 billion) after the central bank had revoked three permissions to the state fund under the Exchange Control Act 1953 (ECA) for investments abroad.

The repatriation was issued under the Financial Services Act 2013.

1MDB had in return indicated that it was unable to repatriate the money as demanded as the funds had either been spent or earmarked for debt transfer.