1MDB: What’s going on?
The scandal involving billions of ringgit in debt of the fully-government owned 1Malaysia Development Berhad has received a lot of attention both locally and internationally, but the growing controversy surrounding this mysterious sovereign wealth fund cum investment arm of the Finance Ministry, is not so easily digestible. Here is what has transpired in this controversy so far:
One: Who is 1MDB and what does it do?
On its website, www.1mdb.com.my, it says that it is a strategic development company, wholly-owned by the Government.
In this report by The Star, 1MDB’s portfolio include “15 power and desalination plants in five countries that comprise its energy business, property that includes 70 acres of prime real estate currently being developed as the Tun Razak Exchange, 495 acres of land on the site of the old airport in Sungai Besi earmarked for the Bandar Malaysia development, and 234 acres of land in Air Itam, Penang.”
Two: There have been many doubts cast on its dealings
Among others, 1MDB has been linked to the controversial and flamboyant tycoon Jho Low, most famously seen in the company of celebrities like Paris Hilton. An extremely detailed report on his links with 1MDB was reported by the reknowned New York Times, and another by Sarawak Report.
Allegations against the company include funds parked at the Cayman Islands, delays on repaying its loans, unclear deals with shell joint-venture companies, which the company has consistently denied and promises to keep the public updated on its progress.
Three: It has, apparently, a lot of debt. A lot.
Various reports such as the one on The Malaysian Insider and Free Malaysia Today show that the company is heavily in debt.
However, 1MDB has clarified that it remains in healthy financial status.
Four: Despite public pressure, the Auditor General won’t touch it. Nor any accounting firm for that matter.
When asked to look through the books of this multi-billion dollar company, the Auditor General himself said he wouldn’t go through it and accounting firms have declined to comment on it, giving up halfway on their audits.
The story is still developing as it was recently reported that 1MDB would need another RM3 billion on top of the RM2billion allegedly injected in by tycoon Tan Sri Ananda Krishnan.
-The Rocket
