1MDB directors unaware of USD700m transfer

PETALING JAYA : 1MDB’s Board of Directors were not informed of the change of bank accounts from BSI-SA to JP Morgan Geneva, the Public Accounts Committee noted.

In its report about the state investment arm, it said the Board of Directors felt they “were not kept in the loop” over the transfer of USD700 million from 1MDB to other accounts.

According to the PAC report, on Oct 3, 2009, 1MDB directors voiced their dissatisfaction after their orders were not followed through and funds were directed to other parties without their knowledge.

The matter was raised after a resolution was made on Sept 30, 2009 to switch banks.

“During our meetings with the Board of Directors, a lot of them were not aware of the resolution,” the report noted.

The directors were also not aware of asset ownership status and the quantity of the assets or the potential risk the assets faced, PAC revealed.

The directors had informed PAC that such a big investment should have been looked into thoroughly with due diligence.

“They also felt the change of bank was done quickly without any check and balance to protect 1MDB’s interest.”

The Board of Directors, PAC said, felt the management had neglected foreign investments into Malaysia.

The bipartisan committee probing into 1MDB concluded in its report released today that the affairs at the fund were “unsatisfactory”.

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