Malaysia's finance ministry did not pay cash to take over 1MDB unit - PM Najib

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KUALA LUMPUR (June 10): Prime Minister Datuk Seri Najib Tun Razak told Parliament today the Ministry of Finance (MOF) Inc did not pay any cash to take over SRC International Bhd from 1Malaysia Development Bhd (1MDB).

Najib, who is also finance minister, said the MOF took over SRC from 1MDB on February 14, 2012.

Najib is chairman of 1MDB's board of advisors.

"The transfer of ownership of SRC from 1MDB to the MOF was done via dividend in specie by 1MDB that paid dividends to MOF in the form of a 100% equity share holding belonging to SRC worth RM1 million.

"MOF did not make any cash payment for the takeover," said Najib in his written reply to Kulim Bandar Baru MP Datuk Abd Aziz Sheikh Fadzir.

Earlier, Abd Aziz had asked Najib to specify the date of MOF's takeover of SRC from 1MDB and the transaction value. Abd Aziz also asked Najib to disclose the debt incurred by SRC.

Today, Najib said SRC would file its latest liability/debt numbers after the company's accounts for financial year ended March 31, 2015 was audited.

He said SRC did not have additional debt since FY14.