Bank Negara must investigate the status of 1Malaysia Development Bhd's (1MDB) RM3 billion placed in the Cayman Islands following the latest twist in the repatriation of the funds.

PKR vice-president Rafizi Ramli said a report in Singapore's The Business Times today that the money will not be repatriated from the Cayman Islands contradicts 1MDB's former claims that it has been returned in full.

In the said article, 1MDB boss Arul Kanda Kandasamy was reported saying he has "no plans" to repatriate the funds as they will be used to service interest payments on its US dollar debts.

"This contradicts 1MDB's earlier statement that confirmed that the money has been returned (to Malaysia)," said Rafizi in a statement today.

He said this warranted serious attention and "immediate action" from the Finance Ministry and Bank Negara.

"I have repeatedly urged Bank Negara to confirm if the funds have really been returned or not.

"The 1MDB CEO's statement today not only shows its investment (in the Caymans) is problematic, but worse, it gives an impression that the 1MDB management is not transparent and is hiding things from the people," he said.

Now you see it...

1MDB was earlier criticised for assuring its auditors pending the sign off of its annual audit that the funds will be returned by November 2014 when it eventually failed to do so.

With mounting criticism over the absent funds and 1MDB's missed debt repayments, Arul announced on Jan 13 that the funds have already been redeemed "in full".

Former prime minister Dr Mahathir Mohamad, a fierce critic of Prime Minister Najib Razak's pet project, remained sceptical and demanded to know where the money was presently kept.

The 1MDB saga took another turn when Reuters reported on Jan 30 that tycoon Ananda Krishnan will lend 1MDB RM2 billion to settle a loan by Malayan Banking Bhd and RHB Bank Bhd due the next day, prompting questions on the necessity for the loan when the Caymans funds were in hand.

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