In his recent writing, posted on his Facebook page yesterday, former Malaysian prime minister Tun Dr. Mahathir Mohamad said the disappearance of a huge money on 1Malaysia Development Berhad (1MDB) and the inability to explain the whereabouts of the funds were the reasons current prime minister Dato’ Sri Najib Razak is unqualified to lead the country.
“The management of government finances is governed by laws, rules, regulations and practices. Corruption prevails in almost all governments, but usually they involve relatively small sums.”
“Governments can lose money through bad investments. We would know where the money is lost. But when huge sums of money disappear, then those entrusted with its management must answer for the disappearance,” he wrote.
He then continued explaining that “disappearance” of money is not the same as “losing”, that disappearance money cannot be traced and it is caused by corruption or theft.
He added that Najib, who “prefer to keep the Ministry of Finance under himself all the time”, must ultimately be responsible for what happens to the country’s finances.
“In the case of 1MDB, the presentation to the Cabinet and approval by it seems to be unclear. There seems to be attempts to hide behind official secrecy,” he said, adding that the obvious fact was that 1MDB has the Prime Minister and the Minister of Finance as its advisor.
1MDB is the recent scandal which has been criticised by many parties – both government and private sectors due to its unclear financial statuses and huge amount of debts.
Dr. Mahathir said the government had invested RM1 million on 1MDB and the company borrowed another RM42 billion from other sources.
“A company with RM1 million capital with no assets cannot borrow 42,000 times its capital with no collaterals. That 1MDB is able to do so is because of government guarantees. In other words it is government which is borrowing the money.
“If 1MDB loses money, the government will bear the loss. Yet the operation of 1MDB is not overseen by government officers responsible for the management of government funds,” he said adding that the company was wrong from the beginning – from started off as an off-budget and was not present before the parliament.
The post continues with Dr. Mahathir detailing out 1MDB’s investments.
He concluded his post by saying that, “It is this disappearance of a huge amount of borrowed money by 1MDB and the inability to answer questions regarding what happened to the funds that disqualifies Najib from being Prime Minister of Malaysia.”