1MDB’s bond-pricing logic puzzles

FINALLY, 1Malaysia Development Bhd (1MDB) has come out to defend itself against critics sniping away at the Government fund for going into various deals, ranging from paying high fees to investment banks and supposedly forking out a premium to acquire power plants.

However, despite coming out with a lengthy explanation, the fund, which is entirely owned by the federal government, is unlikely to put the matter to rest, especially regarding the fees it had paid to Goldman Sachs for two bond issuances amounting to a total of US$4.75bil (RM15.73bil) in the financial year ended March 31, 2013.