1MDB tells WSJ to remove ‘misleading’ story on PAC report

(MMO) – 1Malaysia Development Berhad (1MDB) today accused the Wall Street Journal (WSJ) of misreporting the contents of the Public Accounts Committee’s (PAC) report on the firm that was tabled in the Dewan Rakyat this morning.

In a statement, the firm said it was entirely inaccurate of WSJ to claim in its article that the PAC had found that “billions of dollars” had gone missing from 1MDB, and had recommended a “criminal investigation” on the fund’s senior management.

“This is an outright lie as at no point in the report is it suggested that any funds have gone missing from 1MDB nor is there any reference to a criminal probe.

“Rather, the report recommends that enforcement agencies conduct an investigation into some of the company’s former management,” the firm said.

“We implore the Wall Street Journal to immediately remove this misleading and false statement which has, once again, betrayed its biased and incorrect coverage about the company,” it added.

PAC’s report on the state-owned investment firm was tabled to the Dewan Rakyat this morning and released on the panel’s website.

In the report, the panel said 1MDB’s board of directors failed in their responsibilities to the company and its shareholders by allowing its management to make decisions that were not in line with good accounting practices.

The panel also urged the authorities to investigate former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi over weaknesses in the management of the firm.

According to PAC chief Datuk Hasan Arifin last November, Shahrol Azral had testified on 1MDB’s links with the Terengganu Investment Authority (TIA) and Saudi-based oil exploration and services company PetroSaudi International (PSI).

Speaker Tan Sri Pandikar Amin Mulia has prohibited the Dewan Rakyat from debating the PAC report as its contents include documents classified as official secrets.