BY Ralvin Manikam
The scandal surrounding sovereign investment fund 1Malaysia Development Berhad (1MDB) is no longer just a Pakatan “spin” — the controversy which the opposition has highlighted since 2008 is now proven to be a scandal bigger than initially thought. The latest expose, in the form of a land deal between 1MDB and Lembaga Tabung Haji (LTH) saw the latter purchase a piece of land for RM 188.5 million, 40 times more than when it was purchased by 1MDB four years ago at RM 4.5 million.
The expose came after sales agreement documents were revealed on a blog called “The Benchmark” on 6 May of two parcels of land in the Tun Razak Exchange to be purchased by LTH from 1MDB for RM 772 million.
Apart from opposition MPs, like DAP’s Tony Pua (PAC committee member) and PKR Secretary General Rafizi Ramli, even former Prime Minister Mahathir Mohammad and several UMNO leaders have stepped up and raised some concerns regarding the controversy.
In relation to the LTH land purchase, UMNO Youth Chief Khairy Jamaluddin had said that his wing was “worried” that an institution like LTH was used to bail out 1MDB – which is believed to be debt laden to the tune of RM 42 billion.
“Was it true that the purchase of land plots made in the nearby area was at lower prices than what LTH paid for this land?” asked Khairy, who only last month identified himself as Team 1 Malaysia (under Prime Minister Najib Razak) distancing himself from Team Vision 2020 (team Mahathir Mohammad).
Other than Khairy, and somewhat unsurprisingly, Kedah Menteri Besar Mukhriz Mahathir has put the question Najib’s Finance Ministry – asking it to explain the Tun Razak Exchange land deal being bought from 1MDB at the said price tag.
“If Tabung Haji is willing to pay such a high price for 1MDB land, what is the Finance Ministry’s reason for selling it cheap to 1MDB previously?,” tweeted Mukhriz from his handle @MukhrizMahathir on 9 May.
Najib, still silent on the issue, is both the Finance Minister and 1MDB’s chairman of the advisory board.
Especially incriminating to the 1MDB saga (and with that, Najib legitimacy) are revelations that senior Tabung Haji executives – group managing director and CEO Ismee Ismail, deputy group MD/CEO Johan Abdullah, investment panel member Tan Sri Abdul Samad Alias and director Mohd Irwan Siregar Abdullah – also hold top positions in 1MDB, where Ismee is a director in the state investment fund, Johan is chairman of 1MDB subsidiary Edra Global, and both Abdul Samad and Irwan sit on the 1MDB advisory board. On top of that, Irwan is also the Ministry of Finance’s secretary general.
Former UMNO Deputy Minister Saifuddin Abdullah had on May 8 called out LTH’s Chief Executive Officer following the land deal expose.
“Isn’t Tabung Haji CEO Tan Sri Ismee Ismail also on 1MDB’s board: isn’t that a conflict of interest here?”asked Saifuddin on his Facebook page.
He added that the Muslim pilgrims fund was supposed to be investing in shariah compliant businesses instead.
With mounting pressure on Najib’s 1MDB pertaining the suspicious land deal, even UMNO Vice President Hishammuddin Hussein did not pass up his chance to weigh in on the issue, urging the Auditor General to share the audit results on 1MDB.
“As such, we should not merely wait for the outcome of the Auditor-General’s investigation. In this context, I urge the AG to present his report as soon as possible and forward it to the Public Accounts Committee,” He was quoted saying in the New Straits times.
Hishammudin also proposed that an international audit firm examine and conduct a forensic audit on all 1MDB transactions to answer all issues that had been raised by various parties.
While UMNO big names have appeared to stridently scrutinise the government fund, it would be unthinkable for Deputy Prime Minister Muhyiddin Yassin to remain quiet about the matter – being the next in line as Prime Minister if Najib relinquishes his seat.
“The rakyat wants to know, not just Tun Dr Mahathir Mohamad. The rakyat wants to know why no one has been charged, why the 1MDB board has not been sacked, and about the position of the CEO and the prime minister as adviser,” said Muhyiddin following Barisan Nasional’s loss in the Permatang Pauh by-election.
He had also told reporters that 1MDB’s debt-laden reputation was the biggest factor that led to the loss of their candidate Suhaimi Sabudin to PKR’s Wan Azizah Wan Ismail.
He even said “I don’t know what to say” regarding the scandal when campaigning for Barisan Nasional.
The ground is shrinking below Najib’s feet, with DAP lawmakers such as Bukit Bendera MP Zairil Khir Johari calling for the formers resignation.
“Responsibility lies on the shoulders of the man who is not only chairman of 1MDB’s Board of Advisers, but also the person responsible for appointing all the key personnel in both Lembaga Tabung Haji and 1MDB”
“There does not appear to be any other option. Najib must bear the ultimate responsibility by resigning with immediate effect,” said Zairil, who is also the DAP Central Committee Member.
Opposition leaders have previously hammered at the 1MDB issue, exposing amongst other things, its leakages, debts and also the need for the government to force the Goods and Services Tax (GST) on taxpayers – to alleviate the debt accumulated by the government fund.
All of which was dismissed as being purely opposition propaganda conjured up to ruin the pristine image of Barisan Nasional.
Would UMNO turning against Najib ultimately be the last straw before he loses his premiership?
To make matters worse for him, the Public Accounts Committee has said that it would carry out a probe into 1MDB beginning 19 May. This would commence by calling in 1MDB’s secretary-general Tan Sri Irwan Serigar Abdullah to give his statement.
PAC Chair Nur Jazlan Mohamed said that the committee of eight BN parliamentarians and five from the opposition were unanimous in deciding to bring in all members involved in 1MDB for questioning.
PAC had previous said that it would embark on its own probe only after the Auditor General’s report. Thorough investigations of the 1MDB is expected to make or more likely , break Najib’s position as Prime Minister.
This is the last call for Najib to come clean on 1MDB.
-The Rocket
