KUALA LUMPUR (June 10): 1Malaysia Development Bhd (1MDB) denies an opposition lawmaker’s claim that the debt-laden strategic investment fund has received a RM2 billion loan from Amanah Raya Bhd (AmanahRaya).

“There is no truth in the claim by an opposition MP that 1MDB has taken a RM2 billion loan from Amanah Raya Bhd. 1MDB has never had any financial dealings, including borrowings, with Amanah Raya Bhd,” said 1MDB president and group executive director Arul Kanda Kandasamy in a statement today.

Earlier today, Tanjong MP Ng Wei Aik said AmanahRaya had extended a RM2 billion loan to the fund, and claimed that the loan had yet to be repaid and had affected AmanahRaya’s cash flow.

Citing “highly confidential information” from “insider sources”, Ng said the loan was given after Barisan Nasional’s Kepala Batas MP Datuk Seri Reezal Merican Naina Merican was appointed as the trustee company chairman on Jan 1 last year.

He alleged that the loan carried an annual interest rate of 4%, which was inked via an "IOU bill" issued by AmanahRaya.

Ng, however, had no documentation to back up his claims.

This, he said, had affected AmanahRaya’s cash flow as the company's net assets before the loan was disbursed totalled RM7.5 billion, of which 35% or RM2.6 billion was cash.

The rest, he added, were real estate which constituted 20% of ARB's net assets, bonds and fixed income (30%), shares (10%) and other assets (5%).