1MDB top officials received tongue-lashing from Dr M, says veteran journalist
The Malaysian Insider – Sat, Dec 13, 2014RELATED CONTENT
- 1MDB top officials received tongue-lashing from Dr M, says veteran journalist
Top officials of 1Malaysia Development Berhad (1MDB) received a tongue-lashing from former prime minister Tun Dr Mahathir Mohamad during a recent meeting, veteran newsman Datuk A. Kadir Jasin said today.
Citing sources, the former group editor-in-chief of New Straits Times said the meeting was held prior to the police report lodged by Penang's Umno Batu Kawan division leader Datuk Khairuddin Abu Hassan against 1MDB over the alleged mismanagement of its finances.
"On December 4, the company’s top-level delegation, led by its Chairman, (Tan Sri) Lodin Wok Kamaruddin, was said to have been grilled by Dr Mahathir.
"He is said to be curious about the way the company funds its businesses, bearing in mind that it has a paid-up capital of only US$1 million (about RM3.4 million)," Kadir added.
He said that the 1MDB people were also asked about the price of two pieces of land in Penang for which the company was said to have paid way over the market price – 1MDB bought the land for about RM1.4 billion from two Chinese tycoons last year.
"The source said Dr Mahathir feels obliged to take up the matter with 1MDB and to speak openly on the subject because many parties had come to see him to inform him about the goings-on in the company.
"He was disappointed that issues surrounding 1MDB was not seriously discussed by delegates at last month’s Umno General Assembly.
"How could they when the Umno president and prime minister is the man behind 1MDB and resolutions on the economy were drafted for the debaters?" Kadir wrote.
Dr Mahathir had been one of the fiercest critics of the sovereign wealth fund and had asked Putrajaya to explain how 1MDB benefitted Malaysians, as it had incurred a RM38 billion debt within just five years of its operations.
Besides Dr Mahathir, the 1MDB management team also had a meeting with Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz about the company's borrowings and debts, Kadir said, adding that the meeting was being kept under wraps.
"The sources said 1MBD had requested Bank Negara to extend its non-performing loan (NPL) period from three to six months and was agreed to.
"It is understandable. No matter how unhappy Zeti might have been with 1MDB borrowing, an extension is needed.
"If it was not given, there would have been a massive default and Tier 1 banks that extended the loans would have to make huge provisions. This could lead to the downgrading of the local banking system," the veteran journalist said.
He said that "harsh words" and "frightening warnings" such as "somebody is going to jail" were said during the meeting, with a source revealing that Lodin even offered to resign in the meeting with Zeti.
"But that is not the concern of Bank Negara. Lodin was appointed by the PM. If it is true that he offered to resign, he should tell that to Najib," Kadir added.
Kadir said the police report by Khairuddin was the culmination of weeks of controversies surrounding the sovereign fund.
He said the controversy had now taken on a "sensational and potentially dangerous twist".
Earlier, DAP lawmaker Tony Pua had said that the fact that Khairuddin had lodged a report against his own party leaders, including Datuk Seri Najib Razak, who is 1MDB chairman, was proof that the company's finances were in shambles.
1MDB had responded to the police report, saying that it was confident it would have no legal basis.
"We welcome any investigation into our affairs and the opportunity to rebut malicious allegations,” it had said in a statement last night.
1MDB is Malaysia's second sovereign wealth fund after Khazanah Nasional Bhd.
Critics have long questioned the fund's heavy debts, its use of money and its opaque operations.
In just five years of its operations, the fund was said to have accumulated RM38 billion in debts but concerns over its financial health were brushed aside by Lodin, who had said that its assets stood at RM51.4 billion, about RM2.5 billion more than its liabilities of RM48.9 billion, as of March 31 this year. – December 13, 2014.
