In a Sarawak state election where a record number of top opposition leaders have been barred or placed with travel restrictions in Sarawak, the Barisan Nasional ministers and leaders have had a free run to campaign throughout the state.
In fact, never before in the history of Sarawak elections, had the Prime Minister practically “camped” in the state since nomination day, as if his personal survival is wholly at stake from the outcome of the elections.
The weekly Cabinet meeting has even been shifted temporarily to Kuching on Tuesday to fit itself into the hectic campaign schedule of the Federal Ministers. Under the circumstances, it becomes especially relevant and pertinent for the Cabinet to discuss the exploding 1MDB crisis, especially to the Sarawakian voters who are now increasingly concerned that their tax-payers’ monies are being used to bailout the scandal-ridden firm.
The Cabinet must discuss, decide, announce and explain:
1. The acceptance of the resignation of the 1MDB Board of Directors who have been found to have failed to exercise diligently their fiduciary duties to protect the interest of the shareholders by reining in a rogue management.
2. The acceptance of the recommendation by the Public Accounts Committee (PAC) for the Board of Advisors chaired by Dato’ Seri Najib Razak to be dissolved with immediate effect.
3. The acceptance of the recommendation by the PAC for Article 117 of 1MDB’s Memorandum and Articles of Association which provides for the ultimate decision-making authority to be placed in the hands of the Prime Minister be abolished.
4. The US$50 million claim by International Petroleum Investment Corporation (IPIC) against the Ministry of Finance (MoF) based on the indemnity provided by MoF under the binding 1MDB-IPIC debt-asset swap term sheet.
5. The default of US$1.75 billion of bonds which were guaranteed by IPIC, and the resulting cross default on RM7.4 billion of borrowings by 1MDB which means that the tax-payers are already staring at an immediate bailout of more than RM14 billion.
6. The impending default of another US$1.75 billion of bonds guaranteed by IPIC in October and a RM800 million loan from SOCSO which will further burden the tax-payers with a RM7.8 billion bailout.
7. How the Management of 1MDB made payments of US$3.51 billion to a fictitious “Aabar Investment PJS Limited” set up in the British Virgin Islands which is completely unrelated to the real “Aabar Investment PJS” of Abu Dhabi, which was the underlying cause of the breakdown of the debt-asset swap agreement with IPIC.
8. The allegation by the Wall Street Journal, whose previous allegations have proven true, that the US$681 million which was deposited into Dato’ Seri Najib Razak’s personal bank account originated from 1MDB and were transferred from the fictitious “Aabar Investment PJS Limited” via intermediaries. Furthermore, Wall Street Journal have subsequently alleged that the total deposits into Najib’s personal bank accounts exceed US$1 billion or more than RM4.2 billion.
Finally, given all the damning recent and new developments, the Cabinet must direct the Royal Malaysian Police to immediately expedite investigations into the above matters, granting the Auditor-General full powers to write to all 1MDB’s banking institutions to request for documents and for the Public Accounts Committee to extend its investigations into 1MDB.
The Cabinet must explain all of the above in Kuching because the people of Sarawak have risen to ask these questions to the BN Government as the wealth of Sarawak will be exploited to bailout 1MDB, whether in the form of oil and gas royalties and duties, or income taxes or the painful GST.