I fully support the call by Datuk Nur Jazlan Mohamed, the Chairman of the Public Accounts Committee (PAC) welcoming the President and CEO of 1Malaysia Development Berhad (1MDB), Arul Kanda to volunteer to testify to the PAC.
Datuk Nur Jazlan told Bernama[1] two days ago:
…pihaknya menyambut baik jika Presiden dan Pengarah Eksekutif Kumpulan 1MDB yang baharu, Arul Kanda Kandasamy mahu hadir secara sukarela bagi memberikan penjelasan di hadapan PAC.
“Kami tidak akan memanggil 1MDB, bagaimanapun jika Arul Kanda mahu hadir secara sukarela bagi memberikan penjelasan di hadapan PAC…ia sesuatu yang amat dialu-alukan,” katanya dalam kenyataan di sini, hari ini.
I had earlier disagreed the Chairman’s statement and the Auditor-General’s view that it may be unnecessary to summon 1MDB to testify over its controversial RM42 billion debt and transactions because “1MDB is already audited by a ‘Big Four’ audit firm”.
This is because an audit by the Auditor-General (AG) and the PAC, is very different from a financial audit by an accounting firm. While an accounting firm will review financial transactions to ensure that they are properly recorded and tabulated, the role of the AG and the PAC is to ensure that these transactions are above board, delivers value-for-money and is strictly aligned with national interest.
However, Datuk Nur Jazlan’s latest statement is indication that the PAC is nevertheless willing to listen and allow 1MDB to clarify and refute the mountain of criticisms heaped on the wholly-owned subsidiary of the Ministry of Finance.
Therefore, the onus is now with Arul Kanda to come to the PAC and demonstrate, as he has earlier stated, that he welcomed “public scrutiny” as “a good thing” that “will only serve to strengthen the company and its governance”. Surely there is no better way for 1MDB to engage in the most “responsible manner” sought by Arul.
The 1MDB CEO had said the above when he had offered to engage and dialogue with me over the various criticisms which I have raised on company.
Unfortunately, since my statement on the 17 January 2015 welcoming his offer to dialogue with me, or preferably with the PAC, I have not heard or received anything further from Arul or 1MDB.
Hence I would like to ask, when will 1MDB testify to the PAC? Or has the new CEO decided that perhaps, “public scrutiny” isn’t such “a good thing” for 1MDB after all?