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BPMN 3123 Management Ethics

Group G

1ST ASSIGNMENT

Case Study Assignment:

“1 Malaysian Development Berhad (1MDB)”

Student’s name: Shee Kay Hui

Student’s Matric number: 232014

Lecturer’s name: En.Zahid Ariffin Bin Idrus

1Malaysia Development Berhad (1MDB) is a strategic development company. 1MDB began as Terengganu Investment Authority (TIA), a sovereign wealth fund aimed at ensuring economic development for the state of Terengganu that is long term and sustainable while safeguarding the economic well-being of the people of Terengganu. TIA was established in 2008, and was renamed 1Malaysia Development Berhad on January 2009. In his announcement on 22 July 2009, Prime Minister Najib Razak said the decision to expand TIA into a federal entity was made to enable its benefits to reach a broad spectrum of Malaysians rather than to the residents of only one state. 1MDB focuses on strategic development projects in the areas of energy, real estate, tourism and agribusiness. 1MDB has a three-tier check-and-balance system comprising a Board of Advisors, a Board of Directors and a senior management team. The Board of Advisors is chaired by the Prime Minister of Malaysia, Najib Razak. Based in the issues of 1MDB, the RM 425 million profit between September the 25th 2009 and March the 31st 2010 raised many criticisms and controversies on the lack of transparency given to 1MDB's accounts. Tony Pua, DAP Member of Parliament for Petaling Jaya Utara questioned Prime Minister Datuk Seri Najib Razak, 1MDB advisory board chairman, whether the figures were the result of an asset injection into 1MDB by the government such as the transfer of land rights to the company. In my personal opinion, the 1 MDB accounts should be transparency and open to the public. The citizens of Malaysia have the authority to know how did the government spent the money on the development of nation; how well the government manage and control the budget of financial. Furthermore , the image of government spoiled because of the lack of transparency on accounts. Next, further allegations were made by the Wall Street Journal that US$700 million were transferred from 1MDB and deposited in AmBank and Affin Bank accounts under Najib's name. This issues has affecting the world’s view toward Malaysia and become hot issues among the global . The Malay Rulers want the government to complete the investigation related to 1Malaysia Development Berhad as soon as possible and take “the appropriate stern action” against all found to be implicated. Malay Rulers remind all leaders to always adhere to the Rukun Negara principles of Upholding the Constitution and the Rule of Law. All leaders of nation should not involved in corruption and keep polite according to the law. A leader should not have such huge of money in his or her account without any acceptable purpose. The Malaysian Anti-Corruption Commission play an important role to combat and investigate the issues of 1MDB. The Malaysian Anti-Corruption Commission (MACC; Malay: Suruhanjaya Pencegahan Rasuah Malaysia, SPRM), formerly known as Anti-Corruption Agency, ACA or Badan Pencegah Rasuah, BPR) is a government agency in Malaysia that investigates and prosecutes corruption in the public and private sectors. This agency should be separated from the prime minister agency so that MACC can fully provide a independent perspective. So that , MACC can ensure its politely, integrity to protect the citizen right , thus to combat the corruption among the leaders in governance. The negative of the case of 1 Malaysian Development Berhad are interrupting or destroying the long term economic development because those individuals involve in this case, they might have to do something that give benefits to the individual or party who offer them the money but put the 1 Malaysian Development Berhad in disadvantage position. Furthermore, the 1 Malaysian Development Berhad’s case affects the potential foreign investors or the current investors will lose confident to invest or continue to invest in the country.