The PAC Report Breakdown
The PAC report on 1MDB is on our desk this morning.
I just gave a press statement on the PAC report. What is clear is that 1MDB had a severe case of a rogue management and very likely criminal mismanagement over the USD700 million transfer to a RBS Coutts account.
The report notes that the Board of Directors has been misled and their orders ignored. The report notes 19 occasions where management went against the directives of the Board of Directors. The management also gave wrong and misleading information to the Board of Directors on 6 occasions. The management also gave wrong and misleading information to the auditors on 3 occasions.
The report also notes that the highly controversial Article 117 of the Memorandum of Association that gives Najib final say on all financial dealings of 1MDB, basically he can over rule the Board of Directors’ decisions. Did Najib ever exercised his powers? The report has nothing on this.
Instead the PAC report states that the then 1MDB CEO, Shahrol Azral is responsible for the actions of the management.
Here is my press conference in Parliament on the PAC report this morning (special thanks to MalaysiakiniTV):