The cabinet reshuffle that was announced by Prime Minister Datuk Seri Najib Razak on Tuesday saw four members of the Public Accounts Committee (PAC) appointed as ministers and deputy ministers.

PAC chairman Datuk Nur Jazlan Mohamed was elected as deputy Home Minister together with three others to the new line-up. Datuk Seri Reezal Merican Naina Merican is deputy Foreign Affairs Minister, Datuk Mas Ermieyati Samsudin is deputy Culture and Tourism while Datuk Wilfried Madius Tangau now holds the portfolio as Science, Technology and Innovation Minister.

The four are Barisan Nasional’s representatives in the PAC committee.

With the cabinet reshuffle, there is an urgent need to replace the four members as the PAC is scheduled to resume its inquiry into 1MDB next week.

1. What is the status for the four BN members in PAC?
By parliamentary convention, MPs appointed to the government administration cannot be sitting members of PAC.

As such, Dewan Rakyat deputy speaker, Datuk Ronald Kiandee said it is necessary for the Cabinet to recommend other representatives to the committee. The names should be submitted to Speaker Dewan Rakyat Tan Sri Pandikar Amin Mulia.


2. When can the four newly minted MPs be replaced?
The re-appointment to the committee can only be done after a motion is passed by the Dewan Rakyat.
The August House will resume again 19th October for six weeks until 3rd December.

“This means the proceedings that has been scheduled by PAC has to be postponed until the appointment has been made by the parliament,” Ronald told Berita Harian.

Nur Jazlan also stressed the same stand for the PAC proceedings to be postponed until the new members have been appointed.

3. Would the PAC proceedings of the 1MDB scandal be affected?
1MDB President and chief executive officer (CEO) Arul Kanda Kandasamy is expected to give his statement to the PAC committee on August 4, 2015 while former CEO Datuk Shahrol Halmi is scheduled to record his statement the following day.

The duo had failed to attend the proceeding on May 26 and had given the excuse that they had prior obligations to attend to.

Finance Minister II, Datuk Seri Husin Hanadzlah later explained that Arul Kanda could not attend the proceeding as he was in Abu Dhabi where he was assisting Internationl Petroleum Investment Company (IPIC) which is helping 1MDB to settle its debts.

Nur Jazlan had earlier said that the PAC committee would not tolerate any more excuses as those hauled up to appear before the PAC were given notice at least six to seven weeks.

Besides Arul Kanda and Shahrol, former 1MD CEO Hazem Abdul Rahman is scheduled to be appear before the PAC on August 6, 2015. Hazem held the position from March 2013 to Januari 2015.

It is understood that the committee has also summoned former 1 MDB board members - Tan Sri Bakke Salleh and Tan Sri Azlan Zainol to help into the probe on August 17. Other board members were expected to be questioned the following day.


4. Can the PAC continue their responsibilities with the existing members?
DAP’s Lim Kit Siang said the probe into the scandal should not be halted and stressed that the PAC’s deputy Dr Tan Seng Giaw could lead the investigation as acting chairman.

Parliamentary Standing Orders 77(2) provides that the PAC shall consist of a Chairman and Vice Chairman to be appointed by Parliament, and not less than six and not more than twelve members to be appointed by the Committee of Selection.

The DAP supremo said PAC only requires three lawmakers to make up its quorum and Dr Tan could lead PAC as acting chairman with the remaining four BN lawmakers and four other opposition lawmakers.

Dr Tan in an immediate response to The Malay Mail Online confirmed that PAC could hold its proceedings as usual.


5. What is the status of PAC’s findings?
PAC started its proceedings on the nation’s biggest scandal 1MDB on May 19, 2015.

To date the committee has called in Chief Secretary to the Treasury, Tan Sri Serigar Irwan Abdullah and Director General of the Economic Planning Unit (EPU), Prime Minister's Department, Datuk Seri Dr Rahmat Bivi Abdullah.

The PAC also heard from audit firm KPMG which conducted audit on 1MDB accounts from 2010 to 2012 which is a critical period in 1MDB as most of the major investment decisions were made during that period.

PAC will also call business tycoon, Jho Low Taek Jho Low, through the Ministry of Finance. The decision to call Jho Low is based on the capacity of the businessman as an advisory board to Terengganu Investment Authority (TIA).

On July 9, the PAC received a report which was from a separate investigation conducted by the Auditor General .

The initial interim 1MBD report revealed the 1MDB debt increased due to losses in investments.