Something strange is happening at 1MDB that has left many analysts stumped.
1MDB has managed to secure a six-month extension on a loan repayment of RM6.1bn that had fallen due. That was the second time it had sought an extension.
But why does it need to delay loan repayments when it supposedly has RM18bn parked overseas with an obscure Hong Kong asset management firm, Bridge Partners. And Cayman Islands?
Earlier there was talk in the business press that 1MDB had overpaid by RM2bn in acquiring assets from Tanjung and Genting for RM10bn.*
Then there was talk that it has incurred hefty fees and charges for bond sales via Goldman Sachs.*
It was also said to have bought land in Penang for RM1.38bn – double the value of the land in 2012.*
And then there was the delay in publishing it accounts and the change in auditors.*
At 31 March 2013, 1MDB was saddled with loans amounting to a staggering RM36bn.
Really, a thorough examination and audit is required into the opaque operations of 1MDB. In particular, we need to verify the amount that 1MDB supposedly has parked overseas to satisfy ourselves that it really exists.
* – See Edge report.