KUALA LUMPUR: While opposition Members of Parliament (MPs) have been raining questions down on 1Malaysia Development Bhd’s (1MDB) ballooning debts almost daily since Parliament started, Barisan Nasional (BN) MPs have been mostly tight-lipped about the issue.

Since Parliament came to session to debate Prime Minister Datuk Seri Najib Razak’s 2015 Budget speech, opposition MPs have been questioning 1MDB’s current state of the debts and have been posting written questions on a daily basis to Najib, who is finance minister and chairman of the advisory council of the sovereign wealth fund. Parliament started its third and last session for this year on Oct 7 which will continue till Nov 27.

In a written reply to a parliamentary question by MP Kapar G Manivannan from PKR on 1MDB yesterday, Najib said the financial status of 1MDB is strong and has the backing of its strategic assets that have a proven track record. Najib said apart from its solid growth opportunities, 1MDB has initial public offering assets and strategic real estates.

“Debts incurred by 1MDB are meant for the purchase of energy assets and all the debts incurred have the backing of its strategic assets.

“Up till now 1MDB has not forfeited its obligation on its finances,” he said.

Much has been said about 1MDB’s ballooning debts, which as at financial year 2013 (FY13) ended March 31, stood at RM36 billion and are likely to be over RM40 billion for FY14.

1MDB only has the energy assets to generate cash flow, while its only other source of income is any dividends paid to it from investments it has made.

Last Friday, Deputy Finance Minister Datuk Ahmad Maslan said the ministry will address the issues that have been raised by the opposition on 1MDB when the ministry rounds up the budget debate this week.

Checks showed that the finance ministry is the last ministry on the list to round up its budget debate in Parliament tomorrow.

This article first appeared in The Edge Financial Daily, on November 5, 2014.