Friday 29 Mar 2024
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KUALA LUMPUR (April 14): 1Malaysia Development Bhd (1MDB) could not have achieved break-even point when it sold Edra Global Energy Bhd for RM9.83 billion when the asset was acquired for RM12.1 billion, according to Petaling Jaya Utara MP Tony Pua.

In November last year, 1MDB said it was selling Edra to China General Nuclear Power Corp. In a statement today, Pua said Edra's electricity-generation assets had also incurred interest cost of about RM3.5 billion from bonds issued to acquire the power assets.

He said the RM3.5 billion must be taken into account against estimated cash dividend of RM2 billion, which was allegedly received from Edra when 1MDB owned the company.

Pua said he "decided to re-check the audited accounts of 1MDB and its Edra subsidiaries for 2013 and 2014 — the Edra power plants never paid a single sen of dividend to 1MDB, the parent holding company!"

Pua was responding to 1MDB president and group executive director Arul Kanda Kandasamy's claim that 1MDB had achieved "cash-on-cash break-even" point based on the RM9.83 billion Edra sale price and the estimated RM2 billion cash dividend from the company.

According to Pua, Arul Kanda's "cash-on-cash break-even" claim was recorded in the Hansard when the Public Accounts Committee questioned him on 1MDB's business.

Based on the Hansard transcript in Pua's statement, Arul Kanda claimed that "the cost of interest is a loss to the company (1MDB)".

 

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