By now, 1MDB has supposedly “redeemed” US$2.3bn from a fund registered in the Cayman Islands.
Of this amount, the firm says US$1.2bn (60 per cent) had been “redeemed” earlier, as reflected in its 31 March 2014 accounts. On 13 January 2015, 1MDB announced it had “redeemed” the remaining US$1.1bn. It also reportedly received US$267m in dividends.
When the Edge (19 January 2015) asked 1MDB if the “redeemed” funds would be brought back to Malaysia, this was the answer:
This will depend on what use the funds are ultimately put towards. At present, we are evaluating a number of potential uses for these funds and once a final decision has been made, that will determine whether the funds are brought back to Malaysia or used abroad, for capital expenditure on our international projects, for instance.
When asked if the funds would be used to settled the RM2bn debt to Malaysian banks, 1MDB replied:
1MDB intends to use, over time and as appropriate, the funds redeemed for a variety of corporate purposes including but not limited to capital expenditure and development projects, as well as working capital and the settlement of various financial commitments. In particular, 1MDB intends to direct some of these funds towards development work at Tun Razak Exchange…
The Edge then asked if the “settlement of various financial commitments” included the RM2bn owed to Maybank, RHB, etc.
I am afraid we cannot comment on any specifics at this stage, beyond what has already been outlined in our earlier response.
This sounds a lot like what Bank Negara governor Zeti Akhtar Abdul Aziz’s response when asked about 1MDB’s huge debt:
We will never comment on an individual entity, but we have arrangements to deal with it so that no individual entity will have a systemic implication on the overall financial system of our economy.
No comment from anyone, apparently.
So where is that “redeemed” US$2.3bn (RM7bn) now?
Meanwhile, 1MDB is reportedly seeking yet another loan repayment extension (the third time). Apparently, 1MDB is still in discussions with Ananda Krishnan, from whom it had bought power assets, for which 1MDB was believed/reported to have overpaid.
Seeking a third extension? Now, this strikes me as a firm facing serious cash flow/liquidity problems, don’t you think?
So why can’t 1MDB use the money “redeemed” from the Cayman Islands fund to repay Maybank and its four other lenders?
Something doesn’t compute here.