A DAP lawmaker today asked the government to reveal the location of RM5.7 billion of 1Malaysia Development Bhd's (1MDB) money, which was raised through bonds guaranteed by the Malaysian government, some two years after the money was raised.

 

The government admitted yesterday that it is liable for the US$3 billion (RM11 billion) bonds that was raised by 1MDB in 2012 and 2013, if 1MDB is unable to pay off the debts using its assets.

 

Petaling Jaya Utara MP Tony Pua pointed out today while US$1.44 billion (RM5.3 billion) was already used by 1MDB to repay its other debts and for working capital purposes, the other US$1.56 billion (RM5.7 billion) remains unaccounted for.

 

"Just as we were left clueless about the segregated portfolio investment company in the Cayman Islands, we are also now left scratching our head as to where exactly is the US$1.56 billion located or invested," Pua said at a press conference in the Parliament lobby today.

Why is 1MDB cash-strapped now?

He questioned why 1MDB is now "cash-strapped" and asking for more funds from the government when it has billions of unitilised funds parked somewhere.

1MDB previously said that the RM 5.7 billion is located in a "financial institution with good credit ratings".

The bonds were initially raised for a joint venture with Aabar Investments, a Abu Dhabi-based company. To date the joint venture has not taken off with any project.

Previously, 1MDB brought back part of the money from Cayman Islands, but the balance RM4 billion is now in a bank in Singapore, with 1MDB declaring that the money would not be repatriated back to Malaysia and would instead be used to service 1MDB's debts, which amount to more than RM42 billion.