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TwitterAnwar takes aim at 1MDB’s finances
The former finance minister claimed in a statement to the media today that audits on 1MDB’s accounts have not been concluded and said that there was speculation that auditors have declined to sign off on the accounts due to possible irregularities.
Anwar further claimed that 1MDB is seeking some RM5 billion in loans that will be backed by RM10 billion in state-backed bonds.
“This means 1MDB will bear long-term liabilities of RM15 billion come 2013,” said Anwar. “That is four times the value of the bonds issued for the Port Klang Free Zone project, which amounted to about RM3.7 billion.”
1MDB did not respond to requests for comment as at press time.
1MDB was formerly a sovereign wealth fund called the Terengganu Investment Authority but was taken over by the federal government and turned into a strategic development corporation with a focus on energy, real estate, tourism and agri-business.
It has signed various multi-billion agreements with Middle-Eastern and Chinese firms to explore projects in the energy sector and carbon-neutral property developments. It was also tasked to lead the redevelopment of the 400-acre Sungai Besi Airport and Dataran Perdana, both in Kuala Lumpur.
The firm has also been dogged by rumours that celebrity businessman Low Taek Jho, or better known as Jho Low, was alleged to have received a RM500 million contract for the Sungai Besi project, an allegation that Low denies.
Anwar has, however, refused to let the matter rest and continued to question Low’s involvement.
"What is Jho Low's role in 1MDB, specifically in the Sungai Besi redevelopment?" asked Anwar.
He also tried to draw parallels between 1MDB and investment holding company ValueCap, alleging that the latter’s operations were full of “mystery” and opaque to the public, leading to concerns that its purpose was merely to rescue “big cronies” on the Kuala Lumpur stock exchange.
“Now we are worried that public funds that were channelled to 1MDB will also experience the same fate as with other efforts that were ostensibly to spearhead the nation’s economy,” he said. “That hiding behind the apparently meaningful initiative, it will end up only profiting the few who are close to those in power.”
Anwar said he was led to believe 1MDB made “unappropriated profits” of RM121.79 million.
“It becomes a big question mark when non-current liabilities are RM4.39 billion only and not RM5 billion as declared by 1MDB,” said Anwar. “What happened to the RM610 million?”
Other 1MDB figures claimed by Anwar include RM37 million in loans even when the company had deposits with licensed financial institutions worth RM782 million and RM439.8 million in profit from unclear sources.
He also questioned the RM100 million worth in corporate social responsibility (CSR) funds that were to be managed by 1MDB.
“It is believed the RM100 million did not appear in the income statements or accounts,” said Anwar.
MI
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