This is because, senior lawyer Rosli Dahlan said, the DoJ would likely take one-third of the proceeds and costs, which could come to another one-third. Malaysia, he warned, could end up getting only one-third of the value of the assets.
Speaking to FMT, Rosli said: “Except for the US, Malaysian recovery actions can be enforced directly as we have reciprocal arrangements with Singapore, Indonesia, Switzerland, Germany and many other jurisdictions involved on this.”
He was asked to comment on a statement by the DoJ that it was looking forward to cooperating with Malaysia in scrutinising 1MDB transactions.
The US commenced forfeiture action in 2016 and 2017 to recover more than US$1.7 billion (RM6.8 billion) in assets which it said came from funds allegedly misappropriated from 1MDB.
Rosli said the recovery of 1MDB assets should cover both the civil and criminal areas.
He said the government could use the wide powers it had under the Anti-Money Laundering Terrorists Funding and Proceeds Of Unlawful Act, MACC Act, Penal Code, Financial Services Act and other Acts.
The information from the criminal action could be used to launch concurrent civil recovery actions, he said.
Describing the setting up of the 1MDB Task Force as a move in the right direction, Rosli cautioned those involved in the investigation against making unnecessary public statements.
He said they should take cognisance of section 29 (4) of the Malaysian Anti-Corruption Commission Act that it is an offence to disclose the investigation of a report until the suspects have been charged.
He agreed with the statement by former attorney-general Abu Talib Othman that there should be less talk and more work.
“Action must also be taken against those who aided, abetted and concealed, in other words those who conspired to cover up the 1MDB scandal. This would include even the Public Accounts Committee (members) who became ministers, inspector general of police, chief secretary to the government, the MACC chief and any other top civil servant who accepted their office to cover up this kleptocracy.
“Prima facie, their conduct would constitute “gratification” which includes – money, donations, gifts, loans, fees, rewards, valuable security, property, financial benefits, or any other similar advantage, any office, dignity, employment, any forbearance, service or favour of any description, including protection from any penalty or from any action or proceedings of a disciplinary, civil or criminal nature, whether or not already instituted, and including the exercise or the forbearance from the exercise of any right or any official power or duty.”
“It is illogical to say the prime minister is not an officer of a public body when the MACC Act clearly defines that he is. Section 3 of the MACC Act states:
‘Officer of a public body’ means any person who is a member, an officer, an employee or a servant of a public body, and includes a member of the administration, a member of Parliament, a member of a State Legislative Assembly, a judge of the High Court, Court of Appeal or Federal Court, and any person receiving any remuneration from public funds, and, where the public body is a corporation sole, includes the person who is incorporated as such.”
He said the meaning of “member of the administration” was stated in Clause (2) of Article 160 of the Federal Constitution: “Member of the administration” means, in relation to the federation, a person holding office as minister, deputy minister, parliamentary secretary or political secretary and, in relation to a state, a person holding a corresponding office in the state or holding office as members (other than an official member) of the executive council.
The term “public body” includes the government of Malaysia, the government of a State, any local authority and any other statutory authority, any department, service or undertaking of the government of Malaysia, and the government of a state, or a local authority.
“So clearly, all these top office holders are implicated. Tan Sri Alwi Jantan is spot on to say that the whole civil service needs to be purged. I would add, not just the civil service but also the judicial and legal service and the police and MACC.
“Some judgments of the courts have attracted scorn and ridicule on the 1MDB matter and the kleptocracy cases. These need to be reviewed too,” Rosli said.