Current Affairs

Selling of 1MDB energy arm shows ‘flip-flop’ in decision-making: DAP

PAC member and DAP National Publicity Secretary Tony Pua

PAC member and DAP National Publicity Secretary Tony Pua

The indecisiveness in which the beleaguered 1Malaysia Development Berhad (1MDB) showed in its attempts to restructure itself proves that there are a “ bunch of Ministerial clowns managing 1MDB”, a DAP lawmaker has said.

DAP Petaling Jaya Utara MP Tony Pua in a statement said the fickle-minded decision-making process shows that those managing the ‘RM42 billion debacle’ are ‘clueless’.

“CIMB Group Holdings Bhd announced last week on March 26 that they were appointed by the Finance Ministry to find strategic investors for the potential sale of 1MDB’s energy arm, Edra Global Energy Bhd, and CIMB’s role was to include identifying potential buyers and running a competitive process for Edra,” Pua said.

However, the banks’ announcement followed a speech by Second Finance Minister Husni Hanadzlah in Parliament a day before, where Husni said CIMB was to conduct a third party evaluation for  the purposes of an initial public offering (IPO).

“This was completely different from what CIMB announced as Husni claimed that CIMB was appointed only to provide a third-party valuation of 1MDB’s energy arm strictly for the purposes of the IPO.

“Now, in a complete flip-flop by the Ministry of Finance, CIMB announced yesterday that CIMB has been informed by the Ministry that it has decided not to consider a sale of Edra to strategic investors and as such, CIMB’s services as Adviser to the potential sale are no longer required,” Pua pointed out.

Pua, who is also a member of the Public Accounts Committee (PAC) questioned these seemingly ‘flip-flop’ decisions.

“What in the world is happening to MoF and the management of 1MDB?  Who exactly is leading the entire restructuring exercise? Is it the newly announced taskforce comprising of Second Finance Minister Dato’ Seri Ahmad Husni Hanadzlah, Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar, Chief Secretary to the Government Tan Sri Dr Ali Hamsa and Treasury Secertary-General Tan Sri Dr Mohd Irwan Serigar Abdullah?

“Or is it the new President and CEO of 1MDB, Arul Kanda Kandasamy with his board of directors chaired by Tan Sri Lodin Wok Kamaruddin?

“Or for that matter, is the Finance and Prime Minister, Dato’ Seri Najib Razak calling the shots?  Or worse, is it once again, the wheeling-dealing billionaire prodigy Jho Low masterminding behind the scenes?” he said, adding that this debacle has become the ultimate butt of jokes in the global financial community.

The sovereign wealth fund which is aimed at being the government’s investing body, have in recent times found itself under intense scrutiny over its inability to meet its loan repayments and the scandal of its alleged ‘sponsors’, including businessman Low Taek Jho. An audit of the company by the Auditor General was ordered to be undertaken, before it is to be presented to the PAC.

– The Rocket

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