The list of companies 1MDB owes money grew bigger today, after an opposition MP alleged the debt-ridden investment firm had borrowed RM2 billion from government-linked company Amanah Raya Berhad (ARB).

 

In his expose at Parliament today, Tanjong MP Ng Wei Aik ( photo ) said the RM2 billion loan was in the form of an IOU bill issued to 1MDB with an interest rate of four percent per year.

 

"However to this day, not one sen has been returned, let alone any interest paid to ARB," Ng said in a press conference at the Parliament lobby today.

 

He added the RM2 billion had come from ARB's RM2.6 billion reserves.

 

He also claimed former ARB chairperson Dusuki Ahmad and former managing director Ahmad Rodzi Pawanteh were forced to resign from the trustee company, for refusing to issue the loan.

 

"I understand that the loan was only issued to 1MDB after ARB was chaired by (Kepala Batas MP) Reezal Merican Naina Merican," Ng said during a press conference at the parliament lobby today.

 

Forcing company to sell bonds

Citing sources, Ng said the RM2 billion had come from ARB's RM2.6 billion reserves.

This he said had caused the company financial problems, forcing it to sell bonds, and real estate investment trusts (REITs) to maintain its reserves.

"The value of bonds now owned by ARB is just five percent of ARB's assets.

"I understand that ARB is working to sell more real estate to get additional funds to cover back the interest (1MDB) owes ARB," he added.

Ng has demanded explanations from the finance ministry, and wants the police and auditor-general to probe the matter as it may involve criminal breach of trust.

In separate statement this evening, 1MDB and Reezal denied Ng's allegations. Reezal added that he would be taking legal action soon.

1MDB president Arul Kanda said his company had never had any form of financial dealings with ARB.