AGC: 1MDB did ‘no wrong’ on remittances
It has to be proven that the company recklessly provided information that was false in material particulars.
(Free Malaysia Today) – The officials of 1MDB, clarified the Attorney-General’s Chambers (AGC) in a statement, at all times during the material process i.e. during the process of obtaining permission for remittance had complied with the directions given by Bank Negara, hence the permissions/approvals granted.
Unless and until it can be shown, said the AGC, that the officials had deliberately or knew or even recklessly provided information that were false in material particulars, they had committed no offence under the Act. “When 1MDB requested Deutsche Bank (Malaysia) Berhad to remit to a different account, the latter sought clarification from the central bank.”
“Bank Negara responded by advising Deutsche Bank that it being a business decision and as long as there was no deviation from the purpose intended . . . and no further query was made by Bank Negara at the particular time.”
The AGC was commenting on Bank Negara vide a letter dated 1 October 2015 requesting for a review of the decision (not charging 1MDB) citing omission on the part of 1MDB i.e. non-disclosure of certain information. “As far as omission is concerned, there’s no obligation to inform unless requested,” reiterated the AGC.
“In this respect and the fact that there’s no new evidence made available, we do not see the necessity to review.”
Bank Negara, being the controller, did not stop the remittance (from 1MDB) or direct Deutsche Malaysia (Malaysia) Berhad to advise 1MDB to revert to it for a review of the permission granted earlier by the central bank, said the Attorney-General’s Chambers in the statement. “Clearly, there was no information or further information requested by Bank Negara at the material time.”
“1MDB rightfully furnished the information required for the purpose of remittance.”
The relevant forms – ECM 09A and 06B — for remittance in this case, added the statement, did not require the applicant to state the bank account number and the beneficiary of the same as in ordinary remittances which would enable the central bank to go one step further to verify where the funds would end up. “Since there’s no requirement, the omission on 1MDB officials’ part to disclose is not an offence under the Act.”
