Malaysia parliament report calls for probe into 1MDB

Thu Apr 7, 2016 5:39am EDT
 
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By Rozanna Latiff and Emily Chow

KUALA LUMPUR (Reuters) - A Malaysian parliamentary inquiry on Thursday slammed the board of state fund 1MDB for being irresponsible and urged a probe into its former chief, but stopped short of implicating Prime Minister Najib Razak who was an advisor for the troubled firm.

Parliament's Public Accounts Committee (PAC) said senior management at 1Malaysia Development Bhd withheld crucial information from the board and made transactions without its knowledge or approval.

The bipartisan PAC is the first Malaysian entity to level allegations against 1MDB, which is at the center of corruption and money-laundering investigations in the United States, Switzerland, Singapore and Luxembourg.

U.S. Department of Justice officials have asked Deutsche Bank AG and JPMorgan Chase & Co to provide details on their dealings with 1MDB, as the global investigation into 1MDB widens. Goldman Sachs' relation with 1MDB is also under review.

The 1MDB fund, which had piled up over 42 billion ringgit ($11 billion) in debt since its inception in 2009, said its board of directors have collectively offered their resignations after the report.

1MDB BOARD RESIGNS

The parliamentary report said former 1MDB CEO Shahrol Azral Ibrahim Halmi has to take responsibility.   Continued...

 
A construction worker walks past a 1Malaysia Development Berhad (1MDB) billboard at the Tun Razak Exchange development in Kuala Lumpur, Malaysia February 3, 2016. REUTERS/Olivia Harris