State fund 1Malaysia Development Bhd (1MDB) today clarified that the RM42 billion debt was used to purchase independent power producers and land and poured into investment funds such as Brazen Sky and Aabar Investments.
In a statement, 1MDB president and group executive director Arul Kanda Kandasamy said that there had been much speculation over the use of the RM42 billion debt raised by the firm, in particular the RM27 billion which was alleged to be lost or missing.
“We provide a summary of what the RM42 billion debt has been used for, information that is fully disclosed in 1MDB’s audited and publicly available accounts from March 31, 2010, to March 31, 2014.
“We trust this clarification will help to clear any confusion on this matter,” Arul said.
According to charts enclosed with Arul Kanda’s statement, RM18 billion was spent on the purchase of IPPs while RM15.4 billion was invested into funds such as Brazen Sky and Aabar Investments.
After taking away RM5.8 billion in financial expenditure and RM1.7 billion in land costs, 1MDB is left with RM900 million in cash surplus.