Rafizi pokes holes in fund’s debt summary

PETALING JAYA: 1Malaysia Development Berhad’s summary on its RM42bil debt only appears to be a confirmation of public suspicions about the government investment arm, said PKR secretary-general Mohd Rafizi Ramli.

A regular critic of the investment fund, he said he was both delighted and aghast by the breakdown, which was presented based on 1MDB’s audited and publicly available accounts from March 31, 2010 to March 31, 2014.

“I am delighted because there is finally some response to calls for accountability, but I’m aghast at the audacity to disclose the figures as though to show nothing is amiss in 1MDB,” he said.

For starters, Rafizi said 1MDB’s financing cost was the most expensive he had seen, at RM4.5bil with a 10.7% average financing cost that must have included consultancy fees, arranger fees and interest.

He also raised questions on the type of short-term financing and advisory 1MDB had taken at that time, seeing as most of its debts were not even due yet.

“It might have also bought back or terminated some options at a great loss.

“Who benefited from this amount? Which options had 1MDB taken?” Rafizi asked.

On 1MDB’s RM900mil realised foreign exchange loss, Rafizi claimed it was “purely bad management and incompetence” by the investment fund.

“What kind of company allows a RM900mil realised foreign exchange loss? Which transactions and what assets incurred this forex loss?” he demanded.