The contradicting statements over the government’s admission of a RM950 million in "standby credit" for the embattled 1Malaysia Development Berhad (1MDB) is clear sign that it is a government bailout, said PKR.

 

PKR vice president Rafizi Ramli in a statement today said Finance Minister II Husni Hanadzlah’s contradicting claim to 1MDB president Arul Kanda’s statement that the amount is a “ commercial loan ” shows the decision had been made in haste.

“The contradictions paint a picture as if the funds was approved without going through an decision making process with scrutiny.

 

“I am concerned that it looks as if the cabinet has rushed the approval of the RM950 million,” he said.

 

The terms and agreement on the fund injection, he said, does not appear to have been finalised.

 

“Therefore, it is clear that the RM950 million is another ‘bailout’ to ease 1MDB’s financial situation […],” said the Pandan MP.

 

Poor financial status

If 1MDB’s finances were as strong as the government claims, Rafizi said, there would be no need for a cash injection from the federal government.

Husni ( right ) had called the RM950 million a “standby credit” for 1MDB, while Arul had said it was a “loan according to commercial terms”.

Furthermore, Rafizi said 1MDB needed money from the government as its poor financial status can no longer allow it to obtain loans from ordinary financial institutions on normal terms.

“1MDB is also facing problems listing its assets as there is a high likelihood that its initial public offering will not be well-received.

“Therefore, the federal government’s act of injecting funds (into 1MDB) is a clear bailout,” said Rafizi, who is also Pandan MP.