No more new projects for 1MDB

comments     Khairul Khalid     Published     Updated

KINIBIZ 1Malaysia Development Bhd (1MDB) has decided not to undertake anymore new projects, said Arul Kanda, 1MDB’s president and group executive director after a strategic review of its business.

“The company will now focus on its core businesses. No new investments or projects will be undertaken. Furthermore, no new debt will be raised except in order to refinance existing debt, meet existing liabilities, and/or on a non-recourse, project finance basis, as needed,” said Arul in an official statement.

The controversial state company has been under fire in recent months due to it heavy debts – up to RM42 billion as of March 2014. Last week, the company settled a RM2 billion debt that were due to several banks. The loan had been extended several times.

The debt ridden 1MDB is a strategic development company wholly owned by the government of Malaysia. Prime Minister Najib Razak is chairman of 1MDB’s board of advisors.

There were strong rumours, since refuted as “speculation” by 1MDB,  that telecommunications tycoon Ananda Krishnan was in negotiations to rescue the ailing 1MDB.

for the full story, go to KiniBiz .

 



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