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1MDB blames Dr M and media for failed Edra IPO
Published:  Jul 18, 2015 7:20 AM
Updated: Jul 19, 2015 2:11 AM

1MDB today blamed former prime minister Dr Mahathir Mohamad and the media for its failed initial public offering (IPO) of Edra Global Energy Bhd, the holding company of its power assets.

 

"We became the subject of a sustained and unsubstantiated politically motivated campaign by certain opposition politicians and Mahathir Mohamad, who were in turn supported by certain print and online media outlets.

 

"These parties not only cast aspersions on 1MDB but used various means to sabotage its day-to-day business, which impacted, amongst others, a proposed IPO of Edra Global Energy," it said in a statement today.

 

1MDB said this is despite the Finance Ministry-owned company's early successes to rationalise its finances and reduce its debt burden.

 

It said among the "baseless" allegations were that RM42 billion of 1MDB's loan had gone missing and that RM16 billion of its assets were worthless.

 

1MDB had since decided to sell Edra instead, with offers coming from the likes of Tenaga Nasional Berhad (TNB).

 

1MDB said it was committed in ensuring the success of its rationalisation plan.

 

It added that among the decisions made following the plan included a joint venture in March 2015 with Australia's Land Lease to develop 17 out of 70 acres of the Tun Razak Exchange (TRX) land.

 

This was on top of a binding sheet agreement with International Petroleum Investment Company (IPIC) that will help reduce 1MDB's debt by RM16 billion.

 

Possible sale of land

 

1MDB said other moves included looking at possible sale of the company's land parcels in Air Itam and Pulau Indah as well as looking for interested parties to develop the Bandar Malaysia project.

 

"Collectively, these tangible actions by 1MDB will significantly reduce debt and ensure the long-term sustainability of our three core assets, namely TRX, Bandar Malaysia ( photo ) and Edra Global Energy," it said.

 

1MDB added that concurrently, it will also give full cooperation to lawful authorities that are probing the company over possible wrongdoings.

 

The company is being probed by a special task force consisting of officials from Bank Negara, Malaysian Anti-Corruption Agency, police and the Attorney-General’s Chambers.

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