Borrowing by 1MDB part of doing business, says Salleh

comments     Bernama     Published     Updated

Communications and Multimedia Minister Salleh Said Keruak said the borrowing by 1Malaysia Development Berhad (1MDB) was part of doing business.

He was responding to former prime minister Dr Mahathir Mohamad's blog posting that if 1MDB had not been created, then it would not have needed to borrow RM42 billion.

Salleh also questioned Mahathir's assertion that Prime Minister Najib Abdul Razak should be charged with sabotaging Malaysia's banking and financial system.

"In what way did the prime minister sabotage Malaysia's banking and financial system? Can Mahathir explain? Unfortunately, Mahathir's allegation does not state these details," he said on his blog sskeruak.blogspot.com.

Salleh said it must be remembered that 1MDB had tabled a full report during a Cabinet meeting in June this year.

The minister pointed out that after explaining its rationalisation and debt reduction plan, which included the proposed initial public offering to bring in cash, the plan was approved.

"Then, the following month, the Special Task Force confiscated 1MDB's accounts and documents which delayed the exercise that would have turned 1MDB around," Salleh said.

He also said that if a multi-billion business could be done without the need to borrow money, then banks would not be needed and could be closed down.

The minister said even the PLUS North-South Expressway not only needed to borrow money but it also needed a government grant, and charged users toll to pay back what it borrowed.

"And did not Perwaja, a company that failed, also need to borrow large sums of money?" he asked.

On the matter of 1MDB getting land cheap and making a profit on that land, Salleh said undeveloped land would naturally be cheaper than land that had already obtained planning approval and where the infrastructure had been completed.

- Bernama



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