KUALA LUMPUR: A total of RM39.74bil in Federal Government grants were used to repay the 1Malaysia Development Berhad (1MDB) loans and related payments over a five year period, according to the Auditor-General’s Report 3/2024.
The grants were for principal repayment and other expenses, including bond interest and coupon payments.
Besides this, the Federal Government had to also set aside RM9.46bil consisting of RM5bil for the principal of Sukuk Islamic Medium Term Notes (IMTN), which mature on May 27, 2039
This includes RM4.46bil for IMTN coupon payments for the period from 2024 to 2039.
The report also noted that the Federal Government will have to repay RM5bil in committed guarantee related to 1MDB after 11 years.
Comparatively, the report stated that the Federal Government repaid 1MDB loans totalling RM13bil last year, a 749.7% increase compared to the RM1.53bil repaid in 2022.
Among the recommendations of the Auditor-General is for the Federal Government to recover assets related to 1MDB and SRC International Sdn Bhd from both domestic and foreign parties.
The recommendations also included a proposal that the recovered assets are used cover the debt repayment expenses of 1MDB and SRC companies and other debt expenses.
The reported noted that this should be done as Assets Recovery Trust Account (AAMKA) will be closed by 2028 as stated under it's trust directive.
