Treasury officials to face action

A total of RM3bil in bonds were redeemed, some to settle 1MDB debts

PUTRAJAYA: Treasury officials who cannot justify measures taken to bail out debt-ridden 1Malaysia Development Berhad (1MDB) will face action against them, says Finance Minister Lim Guan Eng.

“Heads will roll for officials who are unable to provide written justifications for their actions,” he told reporters at a press conference here yesterday.

Lim was asked about action to be taken against Treasury officials who were complicit in bailing out 1MDB with regard to its debt obligations.

On possible action against Bank Negara governor Tan Sri Muham­mad Ibrahim and Khazanah Nasio­nal Berhad’s top management for bailing out 1MDB, Lim said it was something that must be evaluated fully.

“Everyone should be held accountable unless they were instructed in writing to take certain actions,” he added.

Earlier, Lim said Bank Negara and Khazanah had made payments to the ministry which were then used to service 1MDB’s debt obligations.

Among them, he said, were the redemption of redeemable shares by Khazanah totalling RM1.19bil and sale of land to Bank Negara amounting to RM2.06bil.

In addition, there was the sale of a piece of land on Dec 14 last year by Bank Negara to a ministry’s subsidiary, Hartanah Mampan Sdn Bhd.