By Malaysiakini
The government has admitted to setting aside RM950 million in “standby credit” for 1Malaysia Development Bhd (1MDB), following reports that the government has infused RM1 billion into the state owned investment arm.
Ahmad Husni Hanadzlah
This was revealed to the Dewan Rakyat by Finance Minister II Husni Hanadzlah today , but claimed that only RM60 million of the standby credit had been used by 1MDB to manage its cash flow.
The admission comes days after Deputy Prime Minister Muhyiddin Yassin claimed that there will be no government bailout of 1MDB.
In an immediate response, Pandan MP told reporters later that the “standby credit” was just another name for a bailout and Muhyiddin must respond on the matter.
Meanwhile, Husni also told the Dewan Rakyat that the government is hoping that the initial public offering (IPO) from 1MDB’s energy arm would be able to pay for the company’s growing debts.
“1MDB’s stumbling block is it’s cashflow. But once the IPO is up, this will be settled,” he said.
Specifically he said, the IPO, slated for launch sometime in the middle of this year, will settle 1MDB’s RM13 billion debt in the energy sector.
(More to follow)
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