01
Feb
17

Malaysian government prepares to wind up 1MDB amid scandal

Malaysian government prepares to wind up 1MDB amid scandal

The Malaysian government is laying the groundwork to shut down 1Malaysia Development Berhad (1MDB), the state investment firm mired in a scandal that has become the most serious blight on Prime Minister Najib Razak’s administration at home and abroad.

Under a plan spearheaded by a high-level government unit called the Budiman committee, the assets of the state development fund will be transferred in the coming months to two companies owned by the Finance Ministry.

These valuable assets are two massive plots of land in Kuala Lumpur and one on Penang island.

1MDB, which at one point had debts totalling US$12 billion (S$17.2 billion), last November sold off its other main asset – power plants grouped under Edra Energy – to a Chinese company for RM17 billion (S$5.4 billion).

The three plots of land will be transferred to Piramid Pertama and Aroma Teraju, according to government officials and lawyers involved in 1MDB’s debt workout.

“The resolution of 1MDB’s debt obligations will be carried out separately by the government,” said a senior government official familiar with the exercise.

Datuk Seri Najib, who set up 1MDB seven years ago to spur development at home and to pursue strategic investments abroad, has repeatedly rejected claims that 1MDB had morphed into a private political slush fund for him and his ruling Umno party.

1MDB LIABILITIES

RM5 BILLION
Sukuk bond due in 2039.

RM800 MILLION
Loan from workers’ social security fund Socso due in 2022.

RM2.4 BILLION
Bandar Malaysia sukuk bond.

US$3 BILLION
International bond due in 2023.

US$6.48 BILLION
Under dispute with Abu Dhabi state fund IPIC and its unit Aabar Investments PJS.

To head off the deepening crisis at 1MDB last year, the government decided to dissolve the company and embark on a divestment of its assets to settle its debts.

The Budiman committee, headed by Second Finance Minister Johari Abdul Ghani, was set up last April to handle the restructuring.

…more
Malaysian government prepares to wind up 1MDB amid scandal
7 Jan 2017 – straitstimes.com

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All that is necessary
for the triumph of evil
is for good men
to do nothing.

- Edmund Burke
When the people
fears their government,
there is TYRANNY;
when the government
fears the people,
there is LIBERTY.

- Thomas Jefferson
Do you hear the people sing?

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