1MDB can be charged for repatriation ‘excuses’, says Pua

1Malaysia Development Bhd's (1MDB) explanation that it had already used up the US$1.83 billion (RM7.5 billion) that Bank Negara Malaysia had asked it to repatriate is a show of contempt of the central bank which makes the state investor liable for prosecution under financial laws, DAP said today. "When Bank Negara issues a directive for the repatriation, you don’t respond by telling the bank, 'Sorry, I’ve used up the money'," party publicity chief Tony Pua (pic, right) said in a statement today. He was responding to 1MDB's press statement last night in which the debt-ridden Finance Ministry-owned firm confirmed that the central bank had revoked three permissions granted for overseas investments. The central bank had also ordered 1MDB to repatriate the investments totalling US$1.83 billion and to submit a plan on it. 1MDB last night said it had already used the money to reduce its debt level, but Pua said that the firm was using this as an "excuse" so as not to repatriate the money. "1MDB appears not to understand the fact that Bank Negara has issued a 'directive' for the repatriation of funds, and is not longer seeking an explanation from the company. "It means that 1MDB has to by all means necessary, including the disposal of 1MDB’s overseas assets or even terminating existing agreements, to comply with the directive," Pua said. 1MDB's explanation came on the heels of Bank Negara's revelation that it had revoked permissions for overseas investments by the firm and ordered it to repatriate the funds because it found inaccurate disclosures. The central bank announced this after the Attorney-General's Chambers cleared 1MDB of any wrongdoing with regards to making false declarations, despite Bank Negara's appeal to review the case. 1MDB yesterday said the repatriated investments had been "substantially utilised" and were also used for a "debt for asset swap" with International Petroleum Investment Company (IPIC) as part of the firm's rationalisation plan. But Pua said there was still money to be repatriated, as 1MDB's March 2014 financial statement showed that it had RM13.34 billion of "available for sale" investments abroad. "There is still a balance of US$1.282 billion which can be repatriated. Why isn’t 1MDB repatriating this money? Is it because it is missing too?" he said. Pua, the Petaling Jaya Utara MP, added that the firm's 2014 financial statements and press statement in January this year contradicted its claim that the repatriated investments worth US$2.318 billion from the initial US$1.83 billion had been redeemed. "As I have highlighted previously, and was never disputed by 1MDB, the company has been involved in a round-tripping exercise to hide the fact that the US$2.318 billion of investment in the Cayman Islands was merely a cover for missing funds," he said. Urging the firm to explain its repatriation plan to Bank Negara and to comply with directives, he said failure by 1MDB's board of directors and top executive to do so would put them in breach of both the Exchange Controls Act 1953 and the Financial Services Act 2013. "Bank Negara will have no option but to seek the prosecution of these officials based on this latest attempt to break the law." – October 10, 2015.