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Audit report: 1MDB needs over RM42b to pay off loans

(Source: sg.news.yahoo.com)

The National Audit Department revealed that 1Malaysia Development Bhd (1MDB) would need around RM42.26 billion to pay off the principal cost and interest of loans. — Reuters file pic

KUALA LUMPUR, May 15 — The National Audit Department revealed today that 1Malaysia Development Bhd (1MDB) would need around RM42.26 billion to pay off the principal cost and interest of loans maturing between November 2015 and May 2039.

In the executive summary of its declassified audit report of the strategic fund, it said 1MDB would also need to provide massive fund to pay off high commitment on several years: RM4.88 billion on 2016, RM14.74 billion on 2023, and RM5.14 billion on 2039.

It said 1MDB would also need RM1.52 billion each year between November 2015 and May 2024 to pay off its loans.

The department found as of October 31, 2015, the balance of 1MDB Group’s loan or investment principal was RM55 billion, compared to its asset of RM58.6 billion.

It said 1MDB had raised a capital of only RM1 million, indicating its “instability” because it had to procure loans to fund its activities.

Earlier tonight, Tan Sri Madinah Mohamad declassified the Auditor-General’s report on 1MDB.

The document was prepared by her predecessor, Tan Sri Ambrin Buang, who had asked the previous Barisan Nasional administration to classify the report on his audit of the firm under the Official Secrets Act.

Former prime minister Datuk Seri Najib Razak had ordered Ambrin to perform the audit during the early days of the 1MDB scandal.

Ambrin initially said his report would only be classified for the duration of the PAC’s inquiry into 1MDB, but the document was kept a secret even after the parliamentary watchdog tabled its own report in Dewan Rakyat.

More Info: sg.news.yahoo.com