Malim Nawar state assemblyperson Leong Cheok Keng has questioned whether Perak's representative was informed at the National Finance Council about the massive loans undertaken by 1MDB.
Leong asked this today when debating Perak Menteri Besar Zambry Abdul Kadir's speech on Perak's five-year development plan in the state assembly.
Leong (photo) said according to the federal constitution, the National Finance Council which comprise of a representative from every states must be consulted on the annual loan requirements of the federation and the states as well as the exercise of their borrowing powers.
"In view of this, the question is, whether the exercise of the federation's borrowing power on its own part of through 1MDB, is brought for consultation at the National Finance Council which members also comprise Perak's representatives as required by the federal constitution," he said in his speech emailed to the media.
He was referring to Article 108(4)(c) of the Federal Constitution.
Perak has legitimate interest
Leong also questioned whether the council was consulted prior to 1MDB taking up its multi-billion loans that it is now struggling to repay.
"If yes, whether Perak's representative was present during the consultation and whether the federal government sought the views of Perak's representative?" he said.
He said Perak had a legitimate interest in the matter as 1MDB's financial weakness has impacted on the federation as a whole.
Leong pointed out the council's meeting must be held annually or at the request of three or more states.
He urged Zambry (photo), together with two other states, to exercise this power to call for National Finance Council meeting to discuss the 1MDB issue.
Leong said Article 108(5) of the Federal Constitution allows the council to discuss other financial matters if it affects the states.
He warned that Putrajaya's failure to consult the state representatives at the National Finance Council would be a contravention of the Federal Constitution.