PAC's recommendations on 1MDB implemented - Johari

The government has acted on the recommendations made by the parliamentary Public Accounts Committee (PAC) pertaining to 1Malaysia Development Berhad (1MDB), said Deputy Finance Minister Datuk Johari Abdul Ghani.

He said these included accepting the resignation of 1MDB's board of directors in April this year.

"We viewed seriously the PAC's recommendations and have taken action.

"The government has also asked the Royal Malaysian Police to investigate the company's management which has caused weaknesses in 1MDB.

"I would like to state here that based on investigations by the police, action will be taken against any member of the management or board of directors if proven guilty of wrongdoings."

READ: 1MDB pays in full Bank Negara compound

Johari said this in the Dewan Rakyat today, in reply to a supplementary question from Datuk Ahmad Hamzah (BN-Jasin) on actions taken by the government following the PAC's recommendations contained in the 1MDB Governance Management Control Report, which was tabled in Parliament on April 7.

The report was the result of the PAC's investigation into issues involving the state-owned strategic investment company. The recommendations included asking the authorities to investigate the company's former CEO, and for dissolution of its board of advisors and for removal of Article 117 from 1MDB's memorandum and articles of association.

Johari said IMDB had dissolved its board of advisers as recommended, and transferred its subsidiary companies and its assets to Minister of Finance Inc.

To the original question from Datuk Mansor Othman (PKR-Nibong Tebal) on the progress status of the 1MDB debt rationalisation plan, Johari said at this stage, 1MDB had settled all its debts with the local banks and its short-term loans.

"The sale of its assets like Edra Synergy had been completed and the RM9.83 billion earned from this was used to settle its (1MDB) short-term loans with local banks," he said.