Sunday, March 15, 2015

Ahmad Husni: 1MDB financial woes will be resolved by year end

POH: The cash flow problem now faced by 1Malaysia Development Berhad (1MDB) is expected to be resolved by the end of 2015, said Datuk Seri Ahmad Husni Hanadzlah(pic).
The Second Finance Minister said 1MDB had now taken several strategic measures including studying the rationalisation of land owned by the company and launching an initial public offering (IPO) in June or July.
"We believe that after the land rationalisation and launching of the IPO, we will be able to tackle the financial problems faced by 1MDB," he told reporters after attending the Chinese New Year open house organised by the Tambun pomelo smallholders, here Saturday.
Ahmad Husni said that so far, the 1MDB had utilised RM600mil of the RM950mil allocated by the Government as temporary available credit before the company launched the IPO.
"We provided the funds because we don't want the company to be continuously in debt.
"So, after the launching of the IPO and several other measures, we want to see the company review its financial structure to reduce their debt repayment burden," he said.
Ahmad Husni, who is also Tambun MP, pointed out that the 1MDB was facing cash flow problems not due to management problems or misappropriation as had been alleged.
"The 1MDB is involved in long-term investment, so to reap profit from its investments will take some time.
"The company's financial statement for the year ended March 31, 2013 showed a profit and it only recorded a loss in 2014," he added. – Bernama