Anwar praises govt officials for securing RM1.8 bil 1MDB settlement

KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has heaped praise on government officials involved in securing the US$1.8 billion (RM8.04 billion) in settlement from two Abu Dhabi firms over legal proceedings involving 1Malaysia Development Bhd (1MDB). 

Anwar, who is also finance minister, said the amount exceeded his own expectations, as he had only earlier projected the figure to be between US$1.5 billion and US$1.75 billion. 

He said this achievement is a testament to the ability of the country’s civil servants and demonstrates why the government needs not rely on external consultants and lawyers to handle such huge responsibilities. 

“It’s not that hiring private consultants is not important, but I wanted to show the level of our civil servants’ expertise,” he said during the Prime Minister's Department’s monthly assembly in Putrajaya today. 

“I have served in the government before and was finance minister for eight years, but I have witnessed our officers’ competency. 

“What this means is that it’s reasonable to hire one or two consultants to help, but they (civil servants) must lead and drive the projects. This will subsequently provide them good exposure.”

In his trip to the Philippines on Thursday, Anwar had said his government now requires the civil service to take the lead in advising the administration on policies and strategies instead of relying on external consultants.

In the case of the International Petroleum Investment Company (Ipic) settlement, Anwar made particular mention of the Attorney-General’s Chambers and Malaysian Anti-Corruption Commission in ensuring the negotiation’s success. 

He also expressed his gratitude to Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah and International Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz over their role in the matter. 

“This (settlement) shows our ability and expertise, and we should benefit from this. This, on its own, will restore the image of the civil service to be the best in the region.”

On February 27, the Finance Ministry had said in a statement that Abu Dhabi’s state-owned Ipic and Aabar Investments PJS (Aabar PJS) have agreed to pay US$1.8 billion to 1MDB and Minister of Finance Inc to settle an ongoing legal dispute.

Last November, a London judge gave Malaysia the go-ahead to press its case against the two firms over their role in the multibillion-dollar 1MDB scandal. 

The Malaysian government had challenged a 2017 arbitration settlement between the two sides in the UK, arguing that Ipic and Aabar PJS were aware of fraud allegations against former prime minister Datuk Seri Najib Razak at the time the deal was struck. 

Separately, Anwar said today that raising the salaries of civil servants will be the government’s top priority once the country's revenue increases. 

While it would be impossible to implement it this month, Anwar said he will be providing some positive developments soon. 

Last week, amid calls for a salary review, the Pakatan Harapan chairman had called for patience among the civil servants as the government’s priority at the moment is to assist the poor. 

He said announcing the salary as part of the Budget 2023 allocation would lead to a larger fiscal deficit. – The Vibes, March 6, 2023