KUALA LUMPUR: Failure to adhere to decisions and instructions of the Board of Directors was among the practices that led to
weaknesses in governance at 1Malaysia Development Bhd, the Public Accounts Committee announced today.
In the 1MDB Governance Management Control Report released in the Dewan Rakyat today, PAC said that as a government strategic investment company, 1MDB should have adopted best practices in the principles of governance.
“Having examined the final report of the National Audit Department and the proceedings of the PAC, the PAC found that several practices of the 1MDB management and Board of Directors had led to weaknesses in governance.
“For example, the management had on several occasions failed to abide by the decisions and instructions of the Board of Directors or had acted prior to special approval from the Board of Directors,” said the 106-page report.
The report said several investments and huge loans were executed without detailed evaluation (including studies on the impact on the company’s cash flow) and some major decisions had been made by way of written resolutions based on discussions at previous meetings.-Bernama