Opposition parliamentarians demanded an explanation from the government on the RM1.11 billion set aside for 1Malaysia Development Berhad (1MDB) under the Finance Ministry.

1MDB, a government-owned investment arm, according to Tony Pua (DAP-Petaling Jaya Utara), will be disbursed RM400 million from the RM1.11billion chunk from next year.

“Now we question why is the government funding 1MDB with RM1.11 billion? Because they are supposed to be self-funding and they have already raised more than RM5 billion from the market and expecting to raise another RM5 to RM10 billion,” exclaimed Pua.

Pua added that Deputy Finance Minister Awang Adek Hussin during the Supply Bill 2012 committee stage debate today “vaguely” said that the RM400 million is to assist the company to redevelop the Sungai Besi air base.

1MDB was given the rights to develop the prized land in Sungai Besi, currently a base for the Royal Malaysian Air Force, into a multi-billion ringgit commercial project.

a kugan detention death funeral ummc to puchong 280109 kuala selangor mp dr dzulkefly ahmadHowever, Dzulkefly Ahmad (PAS-Kuala Selangor) (left) countered the claim, saying that the 1MDB has already been granted a project that it could “monetise”.

“So there is really no need to disburse RM400 million next year. They have (recently) raised Islamic bonds of RM5 billion with the government guarantee.

“This is really a government-linked investment company with a really opaque, non-transparent mechanism and they have been spending like there is no tomorrow,” said Dzulkefly.

He also criticised 1MDB’s corporate social responsibility initiative for which the company had spent RM100 million.

“You can only give what you make out of your own profit. 1MDB is a 100 percent hedge fund - everything is made of loans - and before they start making full profits they are already spending on all sorts things... and the government is saying they need to pay 1MDB RM1.11 billion,” said Dzulkefly.

Pua added that the reason given by the ministry was “unacceptable” when 1MDB is capable of generating its own funds.

VIDEO | 5.13 mins


Related stories

AirAsia given RM250mil subsidy for rural air service

Ex-ISA detainees now being probed for money laundering

SC, Bursa launch probe into MAS-AirAsia share swap

'Not yet time for panel to review history books'

From budget deficit to surplus - not good enough?