KUALA LUMPUR: The government had injected RM950 million into 1Malaysia Development Bhd (1MDB) as standby credit, not a loan.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said only RM60 million of the standby credit had been used by 1MDB to manage its cash flow.
“The company is facing problems with its cash flow. To overcome this, the company is in the midst of carrying out the IPO (Initial Public Offering). This needs to be implemented as a short term measure to refinance the existing debt,” said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah in responding to a question by Mohd Fasiah Mohd Fakeh (BN-Sabak Bernam) on the performance of 1MDB.
He said the government is hoping that the initial public offering (IPO) from 1MDB’s energy arm would be able to pay for the company’s growing debts amounting to RM13 billion debt in the energy sector.
“Once IPO is carried out, expected to be done by Sept as part of the consolidation efforts undertaken by 1MDB, the cash flow problem is expected to be addressed. This is on top of the other options including monetisation through the selling of its assets (land). The other option include joint-venture initiatives,” said Ahmad Husni, clarifying that the injection is not in loan as reported in a Singapore daily yesterday.
“Audit is an ongoing process. For instance, if an individual has a report lodged against him, this does not mean he can’t continue with his work, the same goes with 1MDB.
â€œ1MDB is ongoing concern, and continuous efforts need to be carried out to address its problem,” he said in responding to a supplementary question by Rafizi Ramli (PKR-Pandan).-NST