Bank Negara to pursue administrative action against 1MDB

BNM Governor Tan Sri Zeti Akhtar Aziz said the state investment fund's failure to furnish documents to prove that the US$1.83 billion investment that was supposed to be brought back to Malaysia from abroad, had been used for its restructuring plans and to pay off debts.

Zeti said the central bank had asked 1MDB to furnish the documents since last October, but the Finance Ministry-owned company has yet to do so.

"We've asked them (1MDB) to submit documental evidence but until now we have yet to receive them. They have failed to comply with the central bank's directive.

"We will pursue appropriate administrative action allowed under the central bank's laws," she told reporters after the release of BNM's 2015 Annual Report here today.

She said 1MDB is not unique in this matter as rules and regulations should be adhered to by all other companies doing businesses in Malaysia.

Zeti said she wanted closure on the 1MDB issue before she leaves the central bank for good – some 38 days away – so that her successor would not have to deal with it.

Recommendations on the administrative action would be submitted to the Attorney-General's Chambers (AGC), she said, adding that a penalty or compound could be among the punishment imposed.

However, the final decision is subject to the AGC's approval.

Before this, BNM's probe on 1MDB had been denied twice by A-G Tan Sri Mohamed Apandi Ali.