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PUBLISHED: Apr 29, 2014 3:33pm

Anwar: 1MDB is 1Malaysia’s Debts of Billions

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HAMZAH NAZARI By:
Hamzah Nazari

Opposition leader Datuk Seri Anwar Ibrahim has criticised the Malaysian government's transparency and management of 1Malaysia Development Berhad. — TRP pic by SM Amin

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By Hamzah Nazari

PETALING JAYA, April 29:

Opposition leader Datuk Seri Anwar Ibrahim today criticised the Malaysian government’s transparency and management of 1Malaysia Development Berhad (1MDB), a fund set up and chaired by Prime Minister Datuk Seri Najib Razak.

Najib is also the Finance Minister.

Referring to 1MDB’s financial report ending March 31, 2014, Anwar claimed was very controversial.

“The total debt of 1MDB for the financial year of 2013 is reported to have jumped four times to RM42 billion compared with RM8.2 billion in 2012.”

Although 1MDB’s total assets for 2013 increased to RM44.6 billion, Anwar said the fund was burdened by a debt service of RM1.6 billion.

Referring to media reports, Anwar said 1MDB’s surge in net income in 2013 of RM0.78 billion compared with RM0.045 billion in 2012 was only due to land revaluation.

“Without this land revaluation of RM2.7 billion which was given to 1MDB, 1MDB would have recorded a loss of RM1.8 billion,” Anwar said today at a press conference at the Parti Keadilan Rakyat (PKR) headquarters in Tropicana, here.

Anwar added he had opposed in Parliament 1MDB’s purchase of energy assets, valued at RM23.1 billion, as extravagant and higher than the current market price.

“Recent media reports show that there are now cashflow constraints in 1MDB.”

He said the fund’s reported intention to make an Initial Public Offering at the end of the year to generate RM15 billion would increase its debts, pointing out that it also had mega projects planned such as the Tun Razak Exchange and Bandar Malaysia, anticipated to cost RM45 billion.

“This to us, is a high risk and huge debt that must be borne by the country.”

Anwar claimed that RM18 billion in 1MDB funds was parked in the Cayman and Virgin Islands.

“Why is the money kept there and not used to refinance and reinvest in Malaysia?” he asked, claiming that the government was also too opaque in various issues and had refused to answer his questions on this matter in Parliament.

“There was no answer except to say that Bank Negara would continue to oversee.

“If we continue with this culture of accumulating debts, Najib’s 1MDB will fail and become a liability that should be called 1Malaysia’s Debt of Billions!”

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