Malaysia

Classifying 1MDB report under OSA defeats point of audit, says anti-graft group

Members of the media were denied entrance to Parliament yesterday when the final audit report on debt-ridden 1MDB was submitted. – The Malaysian Insider pic, March 5, 2016.Members of the media were denied entrance to Parliament yesterday when the final audit report on debt-ridden 1MDB was submitted. – The Malaysian Insider pic, March 5, 2016.The move to classify the final audit report on debt-ridden state investor 1Malaysia Development Bhd (1MDB) under the Official Secrets Act goes against the main purpose of shedding light into possible large-scale corruption in the public flow of funds, an anti-graft group says today.

Centre to Combat Corruption and Cronyism Centre (C4) executive director Cynthia Gabriel, condemning the move, said shielding the auditor-general’s report on 1MDB under OSA amounted to obstruction of justice as it encroached into legal provisions set up for the handling of such cases.

She said it also ran contrary to the United Nations Convention against Corruption (UNCAC), which Malaysia signed in 2003 and ratified in 2008.

“While the audit report was purposed at investigating and shedding light on possible large-scale corruption pertaining to public funds, this move contradicts the underlying function of the audit itself.

“Shielding the audit report under OSA, while preventing open discourse and debates, amounts to obstruction of justice, given that it encroaches on the legal provisions set up for handling such cases,” she said in a strongly worded statement.

Cynthia said the move also highlighted the controversy over investigations into the state investor as well as impacted on the justice system.

“Plagued with severe accusations of corruption and mismanagement, authorities of a free and fair democratic society would reveal more information rather than suppress findings.

“This completely disruptive and perverse move reflects on the ill health of the Malaysian democratic system and the disrespect for freedom of information, a pillar of democracy.”

Instead, she urged the auditor-general to respect the rule of law and the principles of justice by allowing proper debates and discourse on the crucial findings in the audit report.

“The auditor-general is duty bound to declassify the report immediately, given the huge public interest involved. 

“Stop hiding behind the OSA,” she added.

PAC member Tony Pua confirmed yesterday that the final audit report on 1MDB was submitted by the auditor-Geegral to the National Security Council for classification under the OSA.

The government audit on 1MDB was ordered by Prime Minister Datuk Seri Najib Razak earlier last year, as the government-owned firm had incurred RM42 billion in debts in just six years. 

It is currently on a restructuring exercise to pay off its debts.

On February 11, PAC chairman Datuk Hasan Arifin said the committee would listen to the auditor-general’s report before deciding if there was a need to call more witnesses.

He said he wanted to complete the panel’s probe into 1MDB in time for the next Dewan Rakyat sitting which begins next week. 

Auditor-General Tan Sri Ambrin Buang briefed PAC on the audit report on 1MDB on Friday and this is expected to continue on Monday. – March 5, 2016.

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