1MDB report: PAC wants advisory board abolished

KUALA LUMPUR: The Public Accounts Committee (PAC) has called for 1Malaysia Development Berhad (1MDB)’s advisory board to be abolished for better management of the state investment arm.

In a 106-page report tabled in the Dewan Rakyat on Thursday, the committee said the board should be abolished together with Clause 117 in the company.

Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister, is the chairman of the 1MDB advisory board.

“All references to the Prime Minister should be changed to the Finance Minister to streamline with the provisions of the Minister of Finance Incorporated,” said the report.

The report also found that the 1MDB board of directors had failed in its responsibilities.

“They were found not to be proactive in scrutinising the management and keeping track of the cash flow activities of the company.

“The board of directors should closely monitor the company’s activities by questioning the prices of asset purchases and cost of debts,” it said.