1MDB: Source claims decisions made without Board's approval - Report

The Auditor-General’s investigation on 1Malaysia Development Berhad (1MDB) had apparently found that many decisions made by the state investment fund were made without the prior approval of its Board of Directors.

The decisions were made via written resolutions instead of conducting board meetings, Malaysiakini reported a source close to the investigation as saying.

“The audit team described it as though the Board had been set aside, or that the decisions were influenced by third parties,” the source said in the report.

Prime Minister Datuk Seri Najib Razak is currently facing criticism for his role in the wholly-government owned 1MDB where he is chairman of the Advisory Board.

The report said, the audit team also discovered that on many occasions, the company management failed to follow the Board's directives.

"They also claimed that there were situations where the Board was misinformed about investment decisions," the portal quoted the source as saying.

The source reportedly said, the audit team also found that the company didn't have an investment committee to ensure if a deal made is fair or otherwise.

These processes, the source reportedly said, had caused weakness in the company's management structure.

The audit team had cited the 1MDB-PetroSaudi International Ltd deal as an example, the source reportedly said.