(Nov 11): There is grounds for a charge against 1Malaysia Development Bhd (1MDB) for cheating the central bank, Parti Amanah Negara's legal bureau chief Mohamed Hanipa Maidin said today, urging the Attorney-General (A-G) to reconsider the case against the state investment firm.

The Sepang MP said that the A-G's clearance of 1MDB from any offence was only in the context of the Exchange Control Act 1953 (ECA) in relation to non-disclosure or incomplete disclosure of information to Bank Negara Malaysia (BNM) for permissions to make overseas transfers of money.

But this did not mean that 1MDB was innocent of the crime of cheating which made the state firm liable to be charged under the Penal Code, Hanipa said in a statement today.

"In my view, 1MDB has plainly committed the criminal offence of cheating under the Penal Code thus the A-G, with due respect, was wrong in not prosecuting 1MDB.

"The A-G should have prosecuted IMDB under section 417 or 418 of the Penal Code which provides the offence of cheating and the necessary punishment," he said.

Hanipa said that based on Bank Negara's revelation, there were elements of cheating that "were clearly present in the case of 1MDB".

The central bank said it revoked three permissions for transfers by 1MDB from 2009 to 2011 due to incomplete or inaccurate disclosure of information.

Hanipa said BNM's statement implied "deception on the part of 1MDB".

"The alleged deception took place when 1MDB gave inaccurate and incomplete disclosure leading to permissions illegally granted to 1MDB for the overseas transfers amounting US$1.83 billion.

"Legally speaking, the pertinent question to establish deception is that would Bank Negara have given the relevant permissions had it known from beginning that the information supplied by IMDB were inaccurate and incomplete?" he said.

A-G Tan Sri Mohamed Apandi Ali last month explained his decision not to pursue a charge against 1MDB for inaccurate disclosures because the central bank had not sought enough information from the firm to establish that it had broken the law.

Hanipa said the A-G should review and reconsider the earlier decision to clear 1MDB of wrongdoing and exercise his prosecutorial powers to frame criminal charges against the firm.

"When it involves public money the people has every right to put their trust  on the agencies such as Bank Negara, auditor-general or A-G to take stern action against any person or body who puts the public fund at a high-risk or loss". – The Malaysian Insider