Thursday 28 Mar 2024
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KUALA LUMPUR (June 15): 1Malaysia Development Bhd (1MDB) pays an interest of between RM2.4 billion and RM2.7 billion a year to service its RM42 billion debt, Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah told Parliament today.

"If the debt is RM42 billion, the interest payment is between RM2.4 billion and RM2.7 billion a year.

"The amount (interest) will reduce when the debt is reduced, which is why we want to reduce it," he said in response to a question from Sepang MP Mohamed Hanipa Maidin. He said this when winding up the debate on the 11th Malaysia Plan at Parliament.

However, Ahmad Husni declined to state the amount of interest that 1MDB services on a monthly basis.

Hanipa had asked Husni on the interest borne by the government in servicing 1MDB's mounting debts.

The PAS MP had earlier criticised the government for backtracking on its response to the Parliament, concerning issues relating to 1MDB.

On calls for MoF to give the green light to audit firm Deloitte to start auditing 1MDB's financial accounts for the year ended March 31, 2015, Ahmad Husni said the government wants Deloitte to audit 1MDB, but for now the audit firm was busy auditing Edra Global Energy Bhd.

"This one is done later...now we are doing Edra.....it is done in stages," he said, adding that the government did not deliberately delay the audit on 1MDB.

Edra Global is 1MDB’s power unit, which is due for a listing.

He explained Deloitte is currently auditing Edra, because the government wants to monetise it. He said the audit is expected to be completed in one month's time.

Today, several federal lawmakers raised their concerns over the mounting debt of 1MDB, and questioned the financial repercussions to the country, if 1MDB fails to service its debts.

They also wanted to know what the government is doing to ensure the ringgit does not further deteriorate.

To this, Ahmad Husni told the Parliament that the ringgit’s slide was only due to the strengthening of the US dollar.

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