PETALING JAYA: Former Prime Minister Tun Dr Mahathir Mohamad (pic) claims that only about RM14.7bil can be accounted for from the RM42bil loan taken by 1Malaysia Development Berhad (1MDB) and asked what has happened to the RM27.3bil that is unaccounted for.
In his latest blog post on Thursday, Dr Mahathir said the “disappearance” of a huge amount of borrowed money by 1MDB and the inability to answer questions on it led him to pressuring Prime Minister Datuk Seri Najib Tun Razak to resign from his position.
“These are all the purchases that are known. They all add up to RM14.7bil. So there is approximately RM27bil left.
“More than US$1bil was said to be paid to PetroSaudi without verification as to the value of this company or its assets.
“Where is the rest of the money?” questioned Dr Mahathir in his blog.
Dr Mahathir also listed some of the purchases allegedly made by 1MDB:
a. Purchase of Tanjong Energy (now known as Powertek Energy Sdn Bhd) from Ananda Krishnan for RM8.5bil.
b. Purchase of Genting Sanyen Power (now known as Kuala Langat Power Plant) for RM2.3bil
c. Purchase of Jimah Energy for RM1.2bil
d. Purchase of 70 acres of land in Jalan Tun Razak for RM320mil
e. Purchase of 495 acres of land in the former Sungai Besi TUDM airport (now known as Bandar Malaysia) about RM363.5mil
f. Purchase of 234 acres land in Air Itam in Penang RM1.38bil
Dr Mahathir said 1MDB is not getting any returns from its investments and the Government has lost money when 1MDB paid only RM683mil for TRX and Sungai Besi land.
He added that the total losses incurred by the Government is approximately RM25bil.
“1MDB revalued all its assets at RM52bil. That is because Government land was brought at far below the market price.
“It can only use this money to repay loans if it succeeds in selling them off as land or after development. Progress on TRX is very slow and there is no work on Sungai Besi land. No money will be generated during development; only outflows,” he said.
Dr Mahathir noted that 1MDB was wrong from the beginning.
“The money was borrowed. So it is not sovereign wealth but sovereign debt.
“A company with RM1mil capital with no assets cannot borrow 42,000 times its capital with no collateral. That 1MDB is able to do so is because of Government guarantees.
“In other words, it is the Government which is borrowing the money. If 1MDB loses money, the Government will bear the loss. Yet the operation of 1MDB is not overseen by Government officers responsible for the management of government funds,” said Dr Mahathir.