Story by Chan Lilian & Victor Seow
CONTROVERSIAL investment arm 1Malaysia Development Berhad (1MDB) has been issued a stern reminder.
“You have been forewarned. If you look at the law, the state government has powers on the transfer of land titles as it has to go through the state government. In matters of national interest and importance, the state government can intervene. We will look at the legal provisions.
“If there are issues at stake with the land transaction from one private party, that is 1MDB, to another unknown party, and in relations with the 1MDB financial crisis and scandal, these are grounds for action by the state government,” Chief Minister Lim Guan End said in a terse statement recently.
He was referring to talks of land transactions by 1MDB which owns a 234-acre plot of land in Air Itam, to another private party.
There are 3,000 homes on the site and the Penang government has pledged to ensure the rights of these families are protected.
“In today’s exco meeting, the exco has directed the State Legal Adviser and the State Secretary to look at the legal provisions. I wish to remind that any party that wishes to transact with 1MDB, be forewarned. Do not plead ignorance. In the event, if we take any action, don’t rely on the excuse that you have not been informed. You have been forewarned today and as previously stated,” Lim repeated his warning on July 8 at his office.
“As far as everyone is concerned, we know the seriousness of the allegations against 1MDB. We will definitely support any action taken to press for a fresh general election at parliamentary level. If these funds were released before the last general elections, clearly it was used for the general elections. So, in order to have a clean government, a new government must be freshly elected by the majority of Malaysian voters,” Lim said in conclusion.
In a further development, Lim held another press conference on July 9 and announced that land deals in Penang involving 1MDB would be scrutinised by the state government and its president and chief executive officer Arul Kanda Kandasamy would be required to answer queries pertaining to the ownership of three land titles in Air Itam by the company.
Referring to Section 320 of the National Land Code, Lim said the state through a registrar has the right to enter caveats on any land deals which it suspects of being detrimental to public interest or against the law.
“Subject to subsection (2), a Registrar’s caveat may be entered in respect of any land wherever such appears to the Registrar to be necessary or desirable – (a) for the prevention of fraud or improper dealing; or (b) for protecting the interests of – (i) the Federation or the State Authority; or (ii) any person who is in his opinion under the disability of minority, mental disorder or unsoundness of mind, or is shown to his satisfaction to be absent from the Federation,” read Lim from a copy of the National Land Code,” he said.
According to Lim, the state government will, through the Land and Mines Department, write to Arul Kanda to seek clarifications concerning the details of the land as mentioned earlier.
“We want some clarifications first on the ownership of the land totalling 234 acres bought by 1MDB in Air Itam. There seems to be some confusion over the owners of the land,” Lim said but refused to divulge further details.
Meanwhile, the allegation by the Wall Street Journal (WSJ) that some US$700 million (RM2.6 billion) of funds belonging to the troubled investment arm were channelled into the personal accounts of Prime Minister Datuk Seri Najib Abdul Razak also received the attention of Bukit Gelugor MP Ramkarpal Singh.
He expressed his shock on the matter through a statement issued on July 8. “It is shocking that, at least, a statement has not been recorded by the police from the Prime Minister having regard to the fact that countless police reports have been lodged pertaining to this issue. A simple statement to the police by the Prime Minister that either he did not hold such an account at AmBank or if he did, no such funds were deposited therein, would suffice to refute the said allegation of WSJ,” Ramkarpal said.
“There can be no doubt that the allegation of WSJ is of a magnitude the proportions of which have never been seen before. The fact that the premises of 1MDB was raided today (July 8) possibly means that the investigators of the said allegation have reasonable cause to suspect that there is concealed or deposited thereat evidence of the commission of an offence or offences relating to the said allegation.”
Ramkarpal further asked: “In such serious circumstances, it is shocking as to why it took investigators at least four days to raid the premises of 1MDB. It is also necessary to enquire as to whether the premises of AmBank will be subjected to a similar raid since the money trail, according to WSJ, ended in an account there.”
Ramkarpal called on the Inspector-General of Police (IGP) to act without fear or favour to unravel the truth as the said WSJ allegation has put the nation in bad light.
“The world is watching, not only as to whether there is basis to the said allegation, but also to how it is being investigated locally,” he said.
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