1MDB a ticking time bomb yet PM keeps silent Tony Pua is demanding to know where the “investment funds” from the Caymans is as promised by the Deputy Finance Minister. najib debt2PETALING JAYA: DAP National Publicity Secretary Tony Pua is demanding to know why Prime Minister Najib Razak has continued to remain mum about the 1 Malaysia Development Berhad funds that have not been returned from the Cayman Islands as promised by Deputy Finance Minister Ahmad Maslan. In a statement, the MP for Petaling Jaya Utara said, “In the light of such a serious ticking time-bomb, why has our Prime Minister Dato’ Seri Najib Razak who is not only the Finance Minister but also the Chairman of the Board of Advisors for 1MDB, said absolutely nothing?” Pua was referring to the RM4.07 billion that Ahmad “proudly promised” would be fully returned to 1MDB by the end of last year but which has yet to be returned to Malaysia or 1MDB despite it being the first week of 2015. He said Najib’s continued silence on this issue as well as the two repayment deadlines for a RM2 billion debt that 1MDB missed, was causing people to lose confidence in the fund and in his administration as a whole. “The silence from Dato’ Seri Najib is not only deafening, it demolishes any confidence the investment and financial community has in his administration,” Pua said adding, “Firing the CEO and replacing him with another will not move the elephant in the room.” Pua was referring to the sudden resignation of 1MDB’s CEO, Mohd Hazem Abdul Rahman and the appointment of Abu Dhabi-based Malaysian banker Arul Kanda Kandasamy as executive president and executive director of 1MDB, which Pua viewed as more a case of Mohd Hazem being fired, not having resigned of his own accord. Saying these latest developments at the top level of 1MDB proved all was not well, Pua also said that any delay in the repatriation of funds had far reaching implications as it “threatens the entire stability of the Malaysian financial system”. He explained, “The failure of 1MDB to repay just the RM2 billion loan will severely affect the financial health of two of the country’s largest banks – Maybank and RHB Bank who were the biggest lenders to 1MDB for this loan.” He also said that ultimately it was the Malaysian taxpayer who would have to bear the brunt of the mismanagement of funds at 1MDB. “Worse, a default in the above loan will automatically trigger a default in the balance of RM40 billion of debt in the books of 1MDB. “Such an outcome will be catastrophic to the Malaysian Government, the entire financial system and of course the ultimate bearer of the brunt, the Malaysian tax-payers.” Casting more suspicion on the dubious dealings of those in charge of 1MDB, Pua also asked, “Perhaps the Deputy Finance Minister was too quick to dismiss the critics who had questioned the existence of the Cayman funds? “Or perhaps the Cayman funds are tied up in “investments” of highly questionable value, which if disposed today will result in massive unbearable losses to 1MDB? RAKYAT MARHAEN at 1/07/2015 11:12:00 PG
Posted on: Wed, 07 Jan 2015 06:22:34 +0000
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