Shameful for 1MDB to borrow from Ananda Krishnan, says DAP

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KUALA LUMPUR (Jan 31): Putrajaya should be embarrassed that 1Malaysia Development Berhad (1MDB) had to resort to securing a loan from magnate T.  Ananda Krishnan to pay off billions in overdue debts, the DAP said today.

Its national publicity secretary, Tony Pua, said such a “desperate” measure proved that no commercial lending institutions were willing to lend it money anymore.

"The news is absolutely disgraceful for 1MDB and a terrible embarrassment for the Malaysian government, that its sovereign 'investment fund' had to stoop so low as to depend on the goodwill of a local billionaire to temporarily settle its loans.

"This is despite the fact that 1MDB claimed that it had already fully 'redeemed' its controversial investment in Cayman Islands, amounting to US$1.1 billion, or RM3.9 billion, at the current favourable exchange rate," he said in a statement today.

Pua commented on 1MDB's statement on January 13 that the firm had fully redeemed the US$2.318 billion (RM8.42 billion) which the company invested in a Cayman Islands registered fund.

The Edge Financial Daily yesterday reported that Ananda Krishnan had firmed up an agreement to loan 1MDB as much as RM2 billion to help the firm settle its debt with Malayan Banking Bhd (Maybank) and RHB Bank Bhd due at the end of this month.