The Finance Ministry has denied injecting RM500 million as start up capital for the 1Malaysia Development Berhad's (1MDB) predecessor the Terengganu Investment Authority (TIA)

 

In a written reply to Hanipa Maidin's (PAS-Sepang) ( photo ) queries, the ministry did however admit to forking out RM1 million to take over TIA from the Terengganu government in order to form 1MDB,

 

"Based on information given by 1MDB's management to the Finance Ministry, the statement by Sepang (MP) that TIA was given a start up capital of RM500 million is not true.

 

"The federal government took over TIA from the Terengganu on September 25 2009, for RM1,000,002, and TIA's name was then changed to 1MDB," the ministry said.

Since becoming 1MDB, the company has raked up a massive RM42 billion debt and is now facing troubles repaying its loans.

In a separate written reply, the Finance Ministry said its wholly-owned company 1MDB, is confident it can repay its debt and avoid the late payment in February.

"Based on information provided by 1MDB's management to the Finance Ministry, 1MDB is confident that it is capable of settling its debt according to payment schedule for the financial year of 2015 and will ensure the past incident (late payment) do not repeat," he said.

This was in response to a query by Jelutong Jeff Ooi who had asked the ministry to list out 1MDB's debt that it must repay for 2015.

However, the Finance Ministry sidestepped this question and merely stated the company can meet its debt obligations for this year.

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