#1MDB – The 4th loss of sovereignty for Malaysians

By Pascal Najadi


The Attorney General’s (AG) “prerogative and discretionary” power, under the Federal Constitution, does not extend to guilty parties acting with impunity.

OPINION . . . The people in Malaysia have now lost their sovereignty four times over, as pointed out by lawmaker and longtime Borneo rights activist Jeffrey Kitingan in a recent op-ed.

The fourth time emerged in the wake of the 1MDB mega global financial following the Attorney General (AG) Mohd Apandi Ali misreading his Role under the Federal Constitution, as stated by Jeffrey. The Attorney General’s (AG) “prerogative and discretionary” power, under the Federal Constitution, does not extend to guilty parties acting with impunity.

The 1MDB Scandal shows that the laws are not being enforced in the country, the Rule of Law no longer prevails, and the government in Putrajaya has no legitimacy.

The police, after over two years, are still saying that they are investigating the 1MDB Scandal which has taken the national debt unofficially, via off Budget items, to 70 per cent of GDP, past the 55 per cent ceiling imposed by law.

No one has been arrested in Malaysia over funds being siphoned out from 1MDB and the company having chalked up debts of RM55 billion within six years. An Umno lawmaker has even claimed the Agong may be read as “Malaysian Official 1” (MO1) and therefore it can be implied involved in the 1MDB Scandal. It’s unlikely the Umno lawmaker will be charged with Lese Majeste.

Malaysians, in a variation of Pokemon Go, have come up with another game, “#Tangkap MO1” to “catch the real MO1”.

The US Department of Justice (DoJ) has cited three persons in a civil action suit related to 1MDB viz. “Malaysian Official 1”, Riza Aziz the son of Rosmah Mansor, the wife of Prime Minister Najib Abdul Razak, and related to “Malaysian Official 1” and Penang billionaire Jho Low, a friend of Riza Aziz and his flatmate in London at one time.

Three top officials of SRC International, owned by the Malaysian Ministry of Finance and previously a 1MDB subsidiary, have fled the country.

Several issues arise here.

SRC took a RM4 billion loan from the Retirement Fund, Kumpulan Wang Amanah Persaraan (KWAP). It appears that in connection with the RM4 billion loan, Najib allegedly received a RM42 million “bribe” from SRC. The money was deposited in his personal accounts at AmBank Islamic Private Banking Services in Kuala Lumpur.

The AG, in clearing Najib of wrongdoing on the SRC and the 1MDB scandals, said the latter thought the RM42 million was part of a USD681 million purportedly “no strings attached” political donation he received from an Arab in Saudi Arabia.

The AG, in clearing Najib on the USD681 million saw no further than the Arab on the money trail and has since claimed that he based his decision on “the evidence before him and the law”. No wonder Charles Dickens wrote that “the law is an ass”.

The DoJ has traced the USD681 million from the Arab, “donated” to “Malaysian Official 1”, to 1MDB as the source of the money. The DoJ has traced a further USD20 million from Jho Low to Najib and USD30 million from Aabar BVI, a “bogus” set up in the Cayman Islands, to Najib.

It’s known from charts displayed by the AG at a media conference that Najib used RM3 million of the RM42 million to settle two credit bills.

We can revisit, for record purposes, the first three times that Malaysians lost sovereignty. Jeffrey has spelt it out in the recent op-ed in local media.

The first time was in Borneo through the Federal Government in Putrajaya being in non-compliance on the Malaysia Agreement 1963 (MA63), especially since 1976. MA63 is the basis for Sabah and Sarawak to be in Federation with Malaya. No MA63, no Malaysia.

The second time arises from the fact that there has been no change in the ruling party in Putrajaya for an uninterrupted nearly 60 years.

The third time refers to the issuance of MyKads to an estimated 600,000 illegal immigrants in Sabah, in violation of the Federal Constitution, and entering many of them in the electoral rolls.


The Writer: Moscow and Geneva based Swiss Investment Banker Pascal Najadi is the son of Hussain Najadi, an Iranian with a Bahraini passport, who founded ArabMalaysian Development Bank in Kuala Lumpur. It is Malaysia’s 5th largest bank.

Hussain was assassinated outside a temple in Kuala Lumpur on July 29 2013 after he reported to Bank Negara, the central bank, that unusually large sums of money linked to 1MDB were entering AmBank.


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