Friday 29 Mar 2024
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KUALA LUMPUR (Apr 8): 1Malaysia Development Bhd (1MDB) is not bankrupt, says Prime Minister Datuk Seri Najib Tun Razak.

Najib, who is is also finance minister, told opposition lawmakers that 1MDB, a 100%-owned unit of the government, had paid its RM2 billion debt to Malayan Banking Bhd (Maybank) and RHB Bank on Feb 13 this year.

"In light of this, the issue of 1MDB has bankrupted does not arise," Najib said in a brief written reply to Jelutong MP Jeff Ooi's query. Ooi had queried Najib on 1MDB in parliament yesterday.
 
Ooi had asked Najib whether 1MDB was bankrupt as it failed to pay its RM2 billion loan from Maybank and RHB a few times, based on a schedule stated in the contracts.

Ooi also asked Najib why Bank Negara Malaysia did not take any action.

1MDB, which invests in real estate and power plants, has been closely watched by global investors after news reports indicated that the company had some RM42 billion of debt.

In Malaysia, former Prime Minister Tun Dr Mahathir Mohamad has been seen as one of the strongest critics of 1MDB.

Reuters reported that Dr Mahathir lashed out at Najib on his (Dr Mahathir's) blog on Tuesday, questioning his refusal to address concerns on state fund 1MDB, after calling for him to step down over the weekend.

1MDB, whose advisory board is chaired by Najib, is facing criticism over its debt of nearly RM42 billion (US$11.5 billion) and alleged financial mismanagement.

Najib has ordered an official enquiry into the accounts of the fund.

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