Urging action in 1MDB issue not disloyalty to PM, Umno Youth says

(Malay Mail Online) – Umno Youth’s stand in calling for stern action against those behind 1 Malaysia Development Bhd’s (1MDB) financial problems should not be confused as disloyalty towards party president Datuk Seri Najib Razak, Khairy Jamaluddin said today.

Umno Youth chief Khairy said that the issue at hand is about how to solve the crisis surrounding 1MDB that is facing a huge debt burden of a reported RM42 billion.

“Our loyalty to the party leadership never arose,” Khairy told reporters after chairing the Umno Youth exco meeting at his party’s headquarters here.

“The issue now is how we solve this problem, so that’s why we want this to be solved comprehensively and those who are involved (and guilty) must be punished,” he added.

Khairy, who is also youth and sports minister, said that Umno Youth has made a stand on three issues pertaining to 1MDB at the wing’s exco meeting held earlier.

These include calling for a holistic investigation into the debt-laden sovereign investment arm, as well as to prevent public doubt of the credibility of investigations carried out by both the Auditor General (AG) and the Public Accounts Committee (PAC).

“It has to be comprehensive and no stones should be left unturned… all issues must be answered,” he said.

Khairy said that should the 1MDB issue not be resolved holistically, Putrajaya will be forced to “keep selling off land”.

“I hope we can have a holistic recovery plan. We cannot have a short-term plan that only pays debts on a monthly basis.

“If not, we will be faced with an issue where every month, we have to keep selling plot by plot of land. We need to solve this so that this company (1MDB) does not become a burden to the government,” Khairy added.

In March, Prime Minister Najib ordered the AG and the PAC to investigate 1MDB, amid growing demands for explanations over the state investment firm’s allegedly opaque investment decisions and for amassing a RM42 billion debt pile.

The strategic investment firm’s debts and subsequent cash flow issues that led to problems servicing its loan payments had prompted former prime minister Dr Mahathir to call for Najib’s resignation.