Friday 29 Mar 2024
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KUALA LUMPUR: The government has never guaranteed 1Malaysia Development Bhd’s (1MDB) bonds and loans amounting to RM38 billion, said Prime Minister Datuk Seri Najib Razak.

He said the government only guaranteed RM5 billion of its loans. “Besides this, 1MDB has not received any government guarantee for the rest of its loans,” added Najib, who is also finance minister, in a written reply to Lim Guan Eng (DAP-Bagan) in the Dewan Rakyat yesterday.

Lim had asked the finance minister if the government stood as guarantor for 1MDB’s bonds and loans and whether they exceeded RM38 billion. Najib said the government injected RM1 million into 1MDB, a wholly owned strategic company, when it was incorporated, adding that 1MDB’s investments were generally strategic and done on a government-to-government basis.

One project undertaken by 1MDB is the RM26 billion Tun Razak Exchange envisioned to create a global financial district of international standing. Najib said the project was now in its second phase of construction and marketing.

“Power assets such as Powertek Bhd and Kuala Langat Power Plant Sdn Bhd are also expected to contribute to the nation’s economic growth,” said Najib.

He added that 1MDB’s investments were also channelled directly to corporate social responsibility initiatives via the 1MDB Foundation, with focus placed on education, capacity building and skill development to upgrade the economic status of the people.

“1MDB will continue to carry out the government’s mandate to undertake strategic economic initiatives that would result in long-term advancement, including social projects with an emphasis on human capital development,” he said. — Bernama

This article first appeared in The Edge Financial Daily, on October 3, 2013.


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