1MDB denies causing payment delays to members of the armed forces

1Malaysia Development Bhd has strongly denied that it is the cause of any payment delays to members of the armed forces.

The company reiterated its confirmation on March 21 that all payments to Perbadanan Perwira Harta Malaysia (PPHM), a subsidiary of the Armed Forces Fund Board (LTAT) under the contract, are current and that there are no amounts outstanding.

"1MDB refers to (PKR vice-president) Rafizi Ramli’s revelation today of what he asserts to be an excerpt from the Auditor-General’s Report on 1MDB to the Public Accounts Committee, which we understand has been classified under the Official Secrets Act.

"Whilst 1MDB has previously confirmed that it suffered from a cash-flow mismatch in 2015, the company reiterates its previous confirmation on March 21 that all payments to PPHM under the contract are current and that there are no amounts outstanding.

"Accordingly, 1MDB strongly denies that it is the cause of any payment delays to members of the armed forces," the company said in a statement released today.

The statement said that 1MDB understood that LTAT would, in due course, provide clarifications that would conclusively debunk the so-called link between 1MDB’s contract with PPHM and LTAT’s payments to members of the armed forces.

"This so-called link is a lie deliberately concocted by Rafizi, who has shamelessly tried to pass it off as fact.

"More importantly, if what Rafizi claims he has done is true, then he shows not only a blatant disregard for the law but also unveiled contempt for the ongoing investigations by the PAC, which is a bi-partisan, select committee of Parliament," it said.

Hence, the statement said, Rafizi cannot claim he is a “whistle blower” or is acting in the public interest, given that the PAC, a lawful authority with five opposition members, already has access to and is now reviewing the Auditor-General’s Report on 1MDB.

"1MDB trusts that the relevant lawful authorities and Parliament will further investigate the Pandan Member of Parliament's claim that he has publicly shared a document classified under the OSA, which in turn, is part of an ongoing Parliamentary investigation.

"If any wrongdoing is found to have taken place, we trust that action will be taken under the law," added the statement.