Cover image via Matthew Lloyd/Bloomberg
State-owned strategic investment fund 1MDB has failed to substantiate the reasons it gave to Bank Negara Malaysia (BNM) as to why it could not repatriate the USD1.83 billion (USD2.5 billion at current exchange rate) overseas fund
According to BNM Governor Dr Zeti Aziz 1MDB was told to submit documentation evidence in October 2015 to back up its purported need to keep the funds overseas to repay the state-owned firm's foreign debts, Malay Mail Online reported.
Following which, the central bank is now in the process of pursuing appropriate administrative enforcement actions against the controversial fund.
Zeti, who was speaking at a news conference 23 March, said:
Image via The Malay Mail Online
Explaining the administrative action, the outgoing BNM Governor said that the central bank's action on the state-owned fund is purely administrative and could possibly result in penalties or compounds
She stressed that it is different from the criminal action that A-G Apandi had decided not to pursue.
The central bank earlier last year cancelled the permit and ordered the repatriation of the fund due to inaccurate and incomplete disclosure on the part of 1MDB. However, Attorney-General Apandi said there was no need to bring back the money as there was no evidence of wrongdoing.
