KUALA LUMPUR (Oct 24): Former second finance minister Datuk Seri Ahmad Husni Mohamad Hanadzlah, who reportedly said handling 1MDB issues previously made him ill, has turned around to question the fund's dealings in Parliament today.
Ahmad Husni, who is also the MP for Tambun, said he was questioning its dealings because he was concerned allegations of financial wrongdoings linked to the state-owned investment fund, would negatively impact global perception of Malaysia.
Hence, he urged the government to explain some of 1MDB's more substantial transactions, like the ones with Abu Dhabi state-owned fund, International Petroleum Investment Co (Ipic), and the latter's subsidiary Aabar Investments PJS.
“What happened to the binding term sheet with Ipic? Why didn't 1MDB fulfil the agreement until Ipic had to file for arbitration to seek US$6.5 billion, equivalent to RM26 billion, from 1MDB? Imagine the financial consequences to the country if we lose (the arbitration),” he said during the Budget 2017 debate in Parliament.
“If we lose the case, I believe our ratings will fall. When that happens, there will be a systemic effect to our economy. Foreign investment will leave and our economy will slide. Our economy is already deteriorating in terms of business and job opportunity. A lot of companies are closing down, staff are being laid off. This is the reality,” he added.
He also wanted to know what happened in the Bandar Malaysia stake sale. “I used to work in a bank. When we sell an equity of 60%, payment must be made immediately. Why do we allow [full] payment for the Bandar Malaysia stake to be [deferred] until 2022,” he asked.
He was referring to 1MDB’s sale of a 60% in Bandar Malaysia Sdn Bhd to a 60:40 consortium, comprising Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC) respectively, for RM7.41 billion.
Ahmad Husni said deferring the payment means the Malaysian government will have to assume the risk that the purchaser may not make its payment in years to come.
He also questioned the RM4 billion loan provided to former 1MDB subsidiary, SRC International Sdn Bhd.
“Why did Kumpulan Wang Amanah Persaraan (KWAP) provide a loan of RM4 billion [to SRC], which was allowed a one-off drawdown?
“Usually, when a loan is provided, drawdown is done progressively, with permission. Further, SRC’s principal business is in mining, but only RM400 million was spent on mining, while the rest was used for investments. So another issue here is why didn't KWAP take action since the loan was not used for its intended purpose?” he asked.
Ahmad Husni warned that these issues, which remained unresolved to-date, would negatively affect global perception of Malaysia.
“I’m not raising these issues for political [mileage]. I just feel that I have the right to know. The Prime Minister said perceptions determine our survival. So what if the said [arbitration] does not turn out to be in favour of us, how would the world perceive us then? These are serious issues, we need to know,” he said.
The former minister who resigned from Prime Minister Datuk Seri Najib Razak’s cabinet on June 27, prior to Najib’s announcement of a cabinet reshuffle, has also quit all his party posts in Umno.
He reportedly told a local daily months later that he had been under heavy stress for months in dealing with the controversy over the debts and financial affairs of 1MDB, which is fully owned by the Finance Ministry.
Today, Ahmad Husni said it is imperative to have a government with dignity and integrity, one that will apply good governance standards and stay away from political patronage to ensure that every single sen spent is for the good of the country and its people.