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Najib addresses 1MDB, GST and Altantuya in TV interview

KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak appeared on TV3's Soal Jawab programme tonight to address recent attacks against his administration, in particular, the criticisms thrown in the past week by former premier Tun Dr Mahathir Mohamad.

Speaking to host Hamdan Ahmir, Najib spoke candidly on several controversial issues raised by Dr Mahathir, including those related to the 1Malaysia Development Berhad (1MDB), the 2006 murder of Mongolian model Altantuya Shaariibuu, the Sedition Act 1948, and the implementation of the Goods and Services Tax (GST).

Najib acknowledged concerns over 1MDB's debts, which has now totalled up to around RM41.9 billion, and stressed that efforts were being made to review the government-owned strategic investment firm's finances.

"I was not satisfied by reports by 1MDB's auditing firm Deloitte, which is why I asked for an independent audit by the Auditor-General. I have also asked the A-G's report to be passed on to the Public Accounts Committee, which includes members of the opposition, in order to ensure full transparency."

He said any misuse of 1MDB's funds would not go unaddressed, alluding to allegations in the international press linking 1MDB's financial struggles with Najib's stepson, film producer Riza Aziz.

"We can question (1MDB's) business model and I am prepared to hear different views on that. But I will not condone or accept any instances where funds were "vanished" or siphoned (by other parties), to make a film for example."

"These are the claims that are being made (about 1MDB). I do not want to defend anyone, because it involves my family members, but I want the A-G to clarify on this issue."

Najib also addressed lingering questions over Altantuya's murder, stressing that he had not known the victim or had been involved in her killing, which had been carried out by his former bodyguard, police commando Sirul Azhir Umar.

"It's an old case. Three times, I have made a religious oath including at a mosque in Permatang Pauh that I did not know (Altantuya) and I was not involved in her murder, directly or indirectly.

"The police have investigated the case and found no proof that I knew her. There is no evidence, no picture, nothing written down, no witnesses.

"The case was brought all the way to the Federal Court - should we question the judiciary’s integrity after all this time?"

On the Sedition Act 1948, Najib defended his decision to retain the law despite an earlier promise to repeal it, saying that there was a need to protect peace and harmony in a country as multi-racial and multi-religious as Malaysia.

He also dismissed claims that the law was being used to silence members of the opposition.

"You are allowed to criticise the government - this is a democracy. What we don't want is people touching on racial and religious issues, that can upset others and lead to fighting and unrest.

"The act protects all Malaysians, not just Muslims but non-Muslim too. If we can refrain from commenting on others' religious issues, or questioning their citizenship by calling them "pendatang"... we will have peace."

"It does not mean that you cannot criticise the government. If you are not happy, you can call for a change in government during elections, but what you should not do is call on people to overthrow the government."

He also addressed the public outcry against the GST, arguing that the current economic conditions favoured its implementation.

"There is no right time to implement the GST. But there are two things that favour its introduction: firstly, the fact that oil prices have fallen. Secondly, the government has prepared for this for a long time. It's not something new, it is something that has been on the table since the 1980s.

"On the macro side, the country needs additional revenue given that Petronas' profits have fallen."

The government, he said, had put in place various measures to ease the people's financial burdens, including the 1Malaysia People's Aid (Br1m), the lowering of personal and corporate income tax, and listing more than 4,000 goods and services on the zero-rated GST supply list.

Najib called on the public to report businesses and traders who used the implementation of GST to mark up prices to the Domestic Trade, Cooperatives and Consumerism Ministry.

"The GST is not an additional tax but a replacement to the Sales and Services Tax. There are places where the costs have fallen, supermarkets like Mydin which have kept their original prices, and other retailers which have chosen to absorb the cost of GST. So if there's a problem (with rising prices after GST), it's a question of

enforcement."

"Consumers have the power to avoid places that exploit the situation, and to report them to the authorities, who will take action accordingly."

Reports by Najmuddin Najib, Syed Umar Ariff and Rozanna Latiff

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