KUALA LUMPUR: The findings of Bank Negara Malaysia's (BNM) probe into 1Malaysia Development Berhad (1MDB) indicated administrative problems rather than elements of criminality, 1MDB president and group executive director Arul Kanda Kandasamy said today.
Arul said the central bank's full report on the probe had been submitted to the Attorney-General's office, which has already explained why no criminal proceedings have commenced against the controversial strategic development firm.
"The Attorney-General's chambers have given their full reasons why there was no criminal element found (in the BNM report)."
"We admit that there have been some administrative problems which BNM has asked us to rectify. We respect their authority so we will do our best to comply.
"What's important is that the issues (in 1MDB) are administrative, rather than criminal," Arul said at a briefing held for Umno leaders here today.
BNM had last month revoked three permissions granted to 1MDB for investments abroad worth US$1.83bil (RM7.58bil), which the central bank said was obtained based on inaccurate or incomplete disclosure of information.
It had also issued a directive under the Financial Services Act 2013 to 1MDB to return the US$1.83bil to Malaysia and to submit a plan to the Bank for this purpose.
Arul admitted that 1MDB was currently the most investigated state fund in the country, with five agencies - BNM, the police, the Malaysian Anti-Corruption Commission, the Auditor-General, and the Public Accounts Committee - launching separate probes.
"At this moment, we (1MDB) are an open book. But to be able to read an open book, we need an open mind," he said.
The briefing, attended by around 2,000 people, was held to discuss issues related to 1MDB, the Trans-Pacific Partnership Agreement and the 2016 Budget.