Sunday, March 15, 2015

Minister: RM950mil is not a bailout for 1MDB

IPOH: Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah says the Govern­ment’s injection of RM950mil in standby credit for 1Malaysia Development Bhd (1MDB) does not in any way constitute a bailout, as being claimed by certain quarters.
“A bailout is when a company has failed and the government comes in (to help) ... this is not a failed organisation,” he said.
“It is facing a short-term cash flow problem. The company relied on debts to generate projects which are moving very fast.
“If we look at its financial statement of March 2013, it made profits. It only made losses in March last year,” he said after attending a Chinese New Year open house organised by pomelo growers in Tambun yesterday.
Elaborating on the issue, the minister said RM600mil of the standby credit had been utilised by 1MDB with the remainder still in its reserves.
He advised the people to allow the Auditor-General to complete an audit of 1MDB before making assumptions.
“We have not set any time frame for the Auditor-General. It is up to him to expand the scope of the investigation.
“We are open to have it deba­ted at the Public Accounts Committee, whose members comprise not only Barisan Na­­sional representatives but also from the Opposition,” he said.
Ahmad Husni said 1MDB’s finances would be “in the black” by the end of the second quarter of this year, adding that 1MDB would proceed with its initial public offering (IPO) in June.
“By year-end, it will look good,” he said.
In George Town, Youth and Sports Minister Khairy Jama­luddin said no one would be protected if there was enough evidence of misconduct or dishonesty in 1MDB’s transactions.
“The Government wants to show Malaysians that it has nothing to hide. The Auditor-General’s audit will reveal the truth,” he said at the closing of the MTB Jamboree Balik Pulau yesterday.
The Umno Youth chief said the audit was important as the issue had become fodder for speculation.