Malaysia's Finance Minister: Previous govt deceived public
KUALA LUMPUR: Malaysia's previous government deceived the public and parliament over the country's financial situation and state fund 1Malaysia Development Berhad (1MDB), the new government's finance minister said yesterday.
"It is clear that the previous government conducted an exercise of deception to the public about certain hot-button items, especially 1MDB, and even misrepresented the financial situation to parliament," Mr Lim Guan Eng said in a statement.
He said the previous government led by former prime minister Najib Razak had been bailing out debt-burdened 1MDB since April 2017, paying a total of 6.98 billion ringgit (S$2.4 billion) in all.
"We are extremely concerned as I was informed by Ministry officers that the Ministry of Finance has been bailing out 1MDB debt service obligations since April 2017," said Mr Lim.
He added that the revelation confirms public suspicions that 1MDB had deceived Malaysians by claiming that it had successfully serviced its loans via the company's so-called rationalisation exercise.
"I was informed that among the urgent matters that I need to resolve in my first days as Finance Minister is the payment of interest for 1MDB borrowings. This is because the amount of RM143.75 million is due to be paid by 1MDB by this May 30," he said.
Mr Lim said that an additional RM810.2 million worth of interest is due to be paid by 1MDB between September and November this year. He noted that 1MDB president and chief executive officer Arul Kanda had insisted yesterday that the company is fully able to service its debt obligations.
"I have instructed Arul Kanda to brief the ministry if 1MDB is able to repay the due sum by next week," he said. - THE STAR/ANN, REUTERS
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