Translate
28 September 2015
The PM must answer if he authorised the guarantee arrangement between IPIC and 1MDB in the US$3.5 billion bond sale
Did Najib approve 1MDB’s US$3.5 billion loan, asks DAP
Published: 28 September 2015 8:15 AM
1MDB’s Memorandum and Articles of Association states it needs the prime minister’s written approval for any deals. – The Malaysian Insider file pic, September 28, 2015.
The prime minister must answer if he authorised the guarantee arrangement between International Petroleum Investment Corporation (IPIC) and 1Malaysia Development Bhd in the US$3.5 billion bond sale following reports that billions of the state investor’s funds were unaccounted for, DAP said today.
Its publicity chief, Tony Pua, said the expose in The Wall Street Journal revealed that 1MDB borrowed US$3.5 billion guaranteed by IPIC and placed a US$1.4 billion “refundable deposit” as collateral with IPIC.
The state investor then terminated the options granted to IPIC or its subsidiary, Aabar Investment and paid as compensation US$993 million sourced from the November 2014 US$1.22 billion redemption from 1MDB’s Cayman Island investment and US$975 million borrowed from a Deutsche Bank-led consortium.
Following this, 1MDB still owed IPIC US$481 million as at December 31, 2014.
He added that it also paid about US$300 million to Goldman Sachs in commissions, fees and expenses for arranging the bonds.
Pua said based on these facts, 1MDB ended up with a deficit of US$649 million.
“This means that the wholly owned Ministry of Finance subsidiary ended up with less cash than it had after it took the loan.
“How absolutely bizarre can you get?
“Why would 1MDB borrow so much money, causing RM15.4 billion of indebtedness based on today’s exchange rates, when 1MDB effectively doesn’t get to use any of the funds raised?” the Petaling Jaya Utara MP said in a statement.
He added that although 1MDB borrowed US$3.5 billion, it had effectively access to only US$326 million or less than 10% of the funds raised.
As such, he said, the poser now was whether Datuk Seri Najib Razak had given written approval for the loan transaction, as required under 1MDB’s Memorandum and Articles of Association, which stated it needed the prime minister’s written approval for any deals.
Pua added that if Najib had not given his written approval, 1MDB’s board of directors must then be taken to task for breaching their mandate. – September 28, 2015.
- See more at: http://www.themalaysianinsider.com/malaysia/article/did-najib-approve-1mdbs-us3.5-billion-loan-asks-dap#sthash.xYih8zV3.dpuf
Popular Posts - Last 7 days
-
A man was stabbed to death by his lover who was a part-time model in an incident at a condominium unit in Kota Kemuning here on Monday. It i...
-
I trust Jho Low because he was already making millions - Jasmine Loo Bernama Mac 15, 2024 Ex-1MDB general counsel Jasmine Loo Ai Swan said ...
-
Tiga remaja perempuan ditahan tunggang motosikal secara berbahaya Bernama Mac 14, 2024 Tiga remaja perempuan yang mendakwa mereka daripada ...
-
Kedah MB: ECK no longer part of Kulim airport project Bernama Julai 13, 2022 Muhammad Sanusi announced that the ECK Group of Companies (EC...
-
Naz Empire's defamation lawsuit against Awal Ashaari to go to trial as mediation fails Bernama Julai 12, 2022 The defamation lawsuit f...
-
Seven million Malaysians yet to take booster dose against COVID-19 - PM Bernama Julai 11, 2022 Prime Minister Datuk Seri Ismail Sabri Yaako...
-
Man behind bars for armed robbery gets jail sentence enhanced to 12 years Bernama Julai 12, 2022 An unemployed man who is due to be release...
-
Police seek Singapore consulate help to trace 'Sage' FB account, Irene Teo Bernama Mac 14, 2024 Johor police chief CP M Kumar state...
Popular Posts - Last 30 days
-
A man was stabbed to death by his lover who was a part-time model in an incident at a condominium unit in Kota Kemuning here on Monday. It i...
-
Paris court grants Malaysia's application to suspend claims by purported heirs of Sultan Jamalul Kiram II Bernama Julai 13, 2022 Dr Wa...
-
Ex-wife of Sarawak CM's son tells court husband had child with mistress KUALA LUMPUR: The former daughter-in-law of Saraw...
-
SHAH ALAM - "I am disappointed, what did I do wrong?," says Malaysian Tourism Promotion Board (Tourism Malaysia) director-genera...
-
February 24, 2024 PN demands an explanation from King Sing on the termination of the KP Tourism contract Mas Ermieyati said, the country is ...
-
Viral video of shooting did not happen in Selangor - CPO 30/06/2021 12:10 AM SHAH ALAM, June 29 -- Selangor police today denied a vi...
-
Malaysian Space Board to be fully launched early next year - Dr Adham Bernama Julai 18, 2022 The Malaysian Space Board will be fully launc...
-
MOTAC telah memutuskan pengganti jawatan tersebut disandang oleh Manoharan Periasamy 'Tourism KP was not fired, but demoted becau...
-
Man behind bars for armed robbery gets jail sentence enhanced to 12 years Bernama Julai 12, 2022 An unemployed man who is due to be release...