PAC better bet than A-G in 1MDB probe, Dr M says

(Malay Mail Online) – Tun Dr Mahathir Mohamed said today that he has more confidence in Parliament’s Public Accounts Committee (PAC) than in the Auditor-General in tracing the billions of ringgit that 1Malaysia Development Berhad allegedly lost, pointing out that auditors merely “inspect books”.

The former prime minister was responding to a question during the question and answer session at the Foreign Correspondents Club of Malaysia dinner.

“I would place my faith in PAC more than the Auditor-General.

“Auditors just inspect books, they don’t do forensic auditing. They don’t try to poke and find out where was the money spent, how was it spent, where did you lose this money, et cetera.

“They merely check on the books so they will not discover much, people who are doing the books may be very clever people,” he said during the dinner at the Istana Hotel here.

On Thursday, the PAC warned 1MDB officials that it will not pull any punches during their much anticipated hearing, especially if the state-owned fund’s representatives prove to be dishonest.

His warning came after 1MDB chief executive Arul Kanda Kandasamy and his predecessor, Datuk Shahrol Halmi informed the committee that they were overseas and would not be able to make it to the hearing last Tuesday.

Today, Dr Mahathir said the PAC can probe into the background of what had happened, and even seek answers from the prime minister on how and why the troubled investment firm lost billions of ringgit.

“How is it that you borrow money with such a high interest rate, pay so much of commission and things like that.

“Just imagine borrowing money, you get only 90 per cent of the money you borrow at a very high interest rate.

“That would be very stupid, for the government that shouldn’t happen,” he said.