1MDB debt exceeds RM30 billion?

SHAH ALAM, 11 Sept: The Member of Parliament for Pandan, Rafizi Famil, claimed that 1MDB has a debt over RM30 billion.

He said that he has evidence that the RM5 billion debt claimed by the Prime Minster, Datuk Seri Najib Razak, is not true.

The following is Rafizi Ramli’s press release on the matter.


I am aware of Tun Mahathir Mohamad’s criticism that the 1MDB funds are accumulated from debt and not from the profits generated.

Tun Mahathir Mohamad also questioned why a large amount of the 1MDB fund is stored at an offshore financial centre, the Cayman Islands, as it is certainly not transparent and hides information on fund management.

I often disagree with Tun Mahathir Mohamad in many things. But I support the stand and views taken by Mahathir on 1MDB.

I am of the view that 1MDB’s finances and management, which are not transparent, may pose a threat to the economic stability and well-being of the people.

Reports obtained from financial documents have placed 1MDB’s debt at more than RM30 billion.

This was based on a series of bonds issued to collect funds, which was done by 1MDB several years ago.

In past Parliament sessions, he said, Pakatan Rakyat lawmakers have posed several questions on the RM30 billion debt, which is guaranteed by the government.

Every time this question was posed, Prime Minister Najib Abdul Razak, who is also finance minister, has consistently said it was just RM5 billion from the issuance of the first 1MDB bonds. He gave his official answer in Parliament that other debts are not guaranteed by the Malaysian government.

I have documents to verify that what Najib answered is incorrect as this gives the wrong impression to Parliament.

My investigation shows the whole debt by 1MDB amounts to RM30 billion and that it is borne wholly by the government.

This means that if 1MDB failed to repay the debt, the government would be responsible for the repayment, and that this would certainly entail the use of public funds.

Hence, my stand is that 1MDB’s big debt could pose a threat to the economy as there is no indication of its performance showed by the company.

I believe Mahathir has the same information, and he could not hide his concern.

The last time I raised the 1MDB fund, which is kept in Cayman Island, that it is not transparent, 1MDB sent a summons indicating it would take court action preventing him from raising it.

If what Mahathir had raised is incorrect, 1MDB should also issue a summons to the former prime minister.

I will reveal 1MDB’s debt in the near future, to show that the government is responsible to the accumulated debts by the company.

* RAFIZI RAMLI is the Vice President of KEADILAN and the Member of Parliament for Pandan


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