'Don't speculate, 1MDB's cash used efficiently'
Koh Jun LinPublished: Jan 8, 2015 7:30 PM | Updated: Jan 9, 2015 8:23 AM
State investment company 1Malaysia Development Berhad (1MDB) has assured that it is using its cash in the "most efficient way" for the company.
UPDATED 8.24PM
1MDB was asked why it's not using cash at Caymans to pay debt.
State investment company 1Malaysia Development Berhad (1MDB) has assured that it is using its cash in the "most efficient way" for the company.
It says this after Petaling Jaya Utara MP Tony Pua asked why 1MDB is not repatriating its RM4 billion parked in the Cayman Island, when it is missing debt payments at home.
He also questioned why there are delays in the repatriation of the RM7.18 billion back to Malaysia.
When contacted, company spokesperson told Malaysiakini that 1MDB expressed regret that third parties not familiar with its decision-making processes are making "speculative statements" about the company.
"We regret that third party individuals who are not privy to the decision-making process of the company and do not have the full facts or understand the context of decisions that are made internally, continue to make speculative statements concerning 1MDB.
"1MDB manages the use of its cash in the most efficient way for the company.
"1MDB has always fulfilled its financial obligations and, despite speculation and false claims dating back several years, the fact is that 1MDB has never defaulted on a payment and there is certainly no intention or any reason that it would do so in the future,” the spokesperson said.
'Cayman funds to be redeemed in coming months'
The statement from Pua (right) followed an earlier Reuters report quoting unnamed sources claiming that 1MDB had missed the repayment for a RM2 billion loan that was due at the end of last year. The new deadline is purportedly Dec 30.
As of March last year 1MDB has US$2.33 billion (RM7.71 billion) parked with a segregated portfolio company in the Cayman Islands, which is a well-known tax haven with secretive tax laws.
Deputy Finance Minister Ahmad Maslan had told parliament that the money is being repatriated and the process will be completed by the end of the year, but 1MDB chairperson Lodin Wok Kamaruddin later said this will only be completed in a few months.
To a question on what is currently happening to the funds, the 1MDB spokesperson reiterated that US$1.4 billion (RM5 billion) of the funds have been repatriated so far.
“Furthermore, the chairman of the board of directors recently issued a statement confirming that the remainder would be redeemed within the coming months.
“This process has already commenced and 1MDB will make an announcement as soon as this is completed,” he said.
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It says this after Petaling Jaya Utara MP Tony Pua asked why 1MDB is not repatriating its RM4 billion parked in the Cayman Island, when it is missing debt payments at home.
He also questioned why there are delays in the repatriation of the RM7.18 billion back to Malaysia.
When contacted, company spokesperson told Malaysiakini that 1MDB expressed regret that third parties not familiar with its decision-making processes are making "speculative statements" about the company.
"We regret that third party individuals who are not privy to the decision-making process of the company and do not have the full facts or understand the context of decisions that are made internally, continue to make speculative statements concerning 1MDB.
"1MDB manages the use of its cash in the most efficient way for the company.
"1MDB has always fulfilled its financial obligations and, despite speculation and false claims dating back several years, the fact is that 1MDB has never defaulted on a payment and there is certainly no intention or any reason that it would do so in the future,” the spokesperson said.
'Cayman funds to be redeemed in coming months'
The statement from Pua (right) followed an earlier Reuters report quoting unnamed sources claiming that 1MDB had missed the repayment for a RM2 billion loan that was due at the end of last year. The new deadline is purportedly Dec 30.As of March last year 1MDB has US$2.33 billion (RM7.71 billion) parked with a segregated portfolio company in the Cayman Islands, which is a well-known tax haven with secretive tax laws.
Deputy Finance Minister Ahmad Maslan had told parliament that the money is being repatriated and the process will be completed by the end of the year, but 1MDB chairperson Lodin Wok Kamaruddin later said this will only be completed in a few months.
To a question on what is currently happening to the funds, the 1MDB spokesperson reiterated that US$1.4 billion (RM5 billion) of the funds have been repatriated so far.
“Furthermore, the chairman of the board of directors recently issued a statement confirming that the remainder would be redeemed within the coming months.
“This process has already commenced and 1MDB will make an announcement as soon as this is completed,” he said.
Related stories
1MDB's debt crisis is a stain on Malaysia
With a RM30bil debt, is Pembinaan PFI 1MDB 2.0?
Herculean task for new boss to revive 1MDB
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