The Finance Ministry’s reply on the RM3 billion raised by a 1Malaysia Development Bhd using a government support letter contradicts 1MDB’s own financial statement.

In a parliamentary written reply to DAP’s Petaling Jaya Utara MP Tony Pua, the ministry said half of the US$3billion (RM10.89 billion) went to 1Malaysia Global Investment Limited’s 50-50 joint venture with Aabar Investments.

The remainder went to "other uses like investment opportunities in various sectors", the written reply reads.

However 1MDB’s financial statements for the year ending March 2014 states that US$1.56 billion (RM5.66 billion) of the funds are used for "various investments" while the rest for "working capital and debt repayment purposes".

"It now appears that all the answers by the Ministry of Finance, particularly with regards to 1MDB cannot be trusted [...]

"How can the finance minister get away with telling lies after lies in Parliament?" Pua asked in a statement.

Finance Minister Najib Abdul Razak (left) is also chairperson of 1MDB's board of advisors.

According to the written reply, the funds are meant for the joint venture company Abu Dhabi Malaysia Investment Corporation (ADMIC) which had already been set up.

'Then why still look for funds for TRX?'

However, the financial statement states that ADMIC is a "proposed" joint venture to develop the Tun Razak Exchange (TRX) project in downtown Kuala Lumpur.

US$1.56 billion (RM5.66 billion) were used for "other investments" while the ADMIC terms were finalised while the rest were used in 2014 for working capital and pay debts, the financial statement reads.

"The current reality tells us that even the halved US$1.5 billion (RM 5.44 billion) of funds have not been invested in TRX.

"On the other hand, 1MDB is desperately seeking new funds to develop the project," Pua said.

1MDB last month signed a deal with Australian developer Land Lease for the lifestyle quarter of the project, and said has interest from investors from seven countries for the project.

The MP also questioned how the state investment firm can easily place the US$1.56 billion (RM5.66 billion) in "various investment portfolios" when it was having trouble paying its debts.

"Why is 1MDB so cash-strapped and desperate for a massive bailout from the government, when supposedly, it has billions of ringgit of unutilised funds or liquid investments sitting in some 'licensed financial institution with good credit ratings' somewhere on this planet?" Pua asked.

"Again, just like the mysterious money that is now sitting in BSI Singapore which cannot be repatriated, 1MDB and the Government must explain how these government guaranteed funds have been utilised, abused or misappropriated."

Finance Minister II Ahmad Husni Hanadzlah (right) told Parliament the government extended a RM950 million cash advance to the controversial Finance Ministry firm to service its RM42 billion loan.

1MDB says the RM950 million is a commercial loan but did not respond to requests for the terms of the loan.

The government said that 1MDB is parking its RM4.08 billion repartriated from the Cayman Islands in Singapore to ease transactions.

The government maintains that although 1MDB has cash flow issues, it is not at risk because it has choice assets under its belt.

They include land banks in prime locations in Kuala Lumpur and various energy assets.

The Auditor-General's Department is auditing 1MDB following public outcry, but the terms of reference of the audit was not revealed.

Related stories

All eyes on Muhyiddin as Dr M pressure cooks Najib

Kadir points to Rosmah hurdle in ousting Najib