The brewing scandal behind 1MDB must be investigated by a special taskforce, says TI-M

Anti-graft watchdog Transparency International Malaysia (TI-M) wants the government to set up a special high-level task force to investigate the controversial 1Malaysia Development Berhad (1MDB).

In a statement today, TI-M strongly urged the government to  conduct a full investigation into the numerous allegations of the billion ringgit financial and commercial crime scandal involving 1MDB.

“Almost a year ago, TI-M has had issued a similar press statement urging 1MDB not only to be more transparent in its corporate reporting, but to also report it in a timely manner, demonstrate greater transparency, accountability, maintain high standards of accuracy and completeness in its records,” the statement read.

TI-M warned that failure to do so may contribute to a negative impact on the perception of corruption in our country, Malaysia.

“While TI-M commends Public Accounts Committee (PAC) for requesting the Auditor General’s office to conduct a detailed audit of 1MDB’s financial operations, this is rather insufficient as the perception surrounding 1MDB’s finances have drawn much internationally attention, and raised questions about the Malaysian government’s commitment to pursuing transparency and accountability.

“Furthermore, 1MDB’s finances are high level issues of public importance as well as of national interest as it involves tax payers’ money and the potentially consequential damaging impact that it poses to the banking system and the nation’s economy,” it added.

Investigate 1MDB for any elements of corruption, TI-M said

The body called for the task force to comprise of agencies like the Royal Police Force’s Commercial Crime Division, the Auditor’s General Office, Bank Negara Malaysia, Ministry of Finance and Malaysian Anti-Corruption Commission. It also added that corporate auditors like Ernst & Young and KPMG should be included in this task force as they were the external auditors of 1MDB prior to withdrawing their services to 1MDB.

“1MDB, as a corporate citizen, has a role to play and must exercise their professional obligations both to their client and society even though 1MDB has repeatedly stated that its finances are in order,” TI-M said.

“Hence, it is appropriate and timely that this special task force be formed to look into this issue in a comprehensive and transparent manner, and the task force must have the power to call relevant organisations and individuals to assist in its investigations so as to leave no stone unturned.”

– The Rocket