Over RM100 million in fines imposed on 1MDB, related entities, reveals PH

mat-sabu-ph-wan-azizah-1mdb-1PETALING JAYA: Pakatan Harapan (PH) leaders today revealed that Bank Negara Malaysia (BNM) had imposed a total of RM115.8 million in compounds and administrative penalties on 1MDB and its entities in the past two years.

PH president Dr Wan Azizah Wan Ismail said this was contained in a brief response by the central bank’s legal adviser to a memorandum submitted by the opposition MPs early last month.

She said that to date, the central bank had only exercised its powers under Clause 234(3)(b) to fine 1MDB and its related entities a total of RM115.8 million.

“Unfortunately, the move to fine 1MDB is akin to imposing a fine on Malaysians, as all the debts and fines on 1MDB are now being borne by Malaysians. It is like a double whammy.

“Logically speaking, if BNM had already imposed RM115.8 million in fines on 1MDB, it means a lot of violations occurred in 1MDB’s affairs.

“And these transactions and actions occurred under orders from someone, as 1MDB is not an entity that acts on its own,” she said in a press conference at the PKR headquarters here today.

Wan Azizah said from the RM115.8 million, media reports had stated that AmBank was fined RM53.7 million for breaching the Financial Services Act 2013 and the Islamic Financial Services 2013.

“I wish to get clarification on whether the remaining RM62.1 million fine imposed has already been paid, and if yes, who paid it.

“If 1MDB or other related entities paid the fine, then this means Malaysians not only have become victims of the public’s funds being swindled in 1MDB, but they are also now forced to bear the fines imposed on 1MDB,” she said.

Wan Azizah said the central bank had yet to exercise its full powers under the FSA.

Wan Azizah said since BNM had already imposed fines under Clause 234(3)(b) on 1MDB as a corporate body, this must be followed by action under Clause 234(5) against the individual responsible for giving instructions and causing the sovereign wealth fund to violate the rules under the Act.

The clause gives power to the central bank to impose any fines or punishments provided under the Act against the director, senior management and any other individuals responsible for 1MDB’s management.

Wan Azizah further stated that she would lodge a police report next week to enable the central bank to probe Prime Minister Najib Razak as the chairman of the 1MDB advisory board, present and past board of directors and present and past 1MDB senior management.

DAP’s political education director Liew Chin Tong said they would also be seeking a meeting with BNM governor Muhammad Ibrahim, as many facts were not disclosed in the letter received yesterday.

“There is a need for him to meet us, and give a detailed explanation,” he said.

Opposition leaders and MPs had in August made a public statement by walking two kilometres to BNM, to request the central bank to re-open investigations into the alleged mismanagement of state-owned 1MDB.

Armed with a memorandum addressed to the BNM governor, the MPs clad in formal attire left the Parliament building at 9am and headed for the BNM headquarters, a walk that took around 35 minutes.

The memorandum contained information made public through the United States’ Department of Justice’s (DoJ) 1MDB-related civil suits, which alleged that billions of ringgit were embezzled from the state development fund.