TROUBLED state investor 1Malaysia Development Bhd needs at least RM1.52 billion yearly, from 2015 until 2024, to repay its debts, said the auditor-general in his report to Putrajaya.

The auditor-general said provided a proposed rationalisation plan was implemented and no new debts were incurred after October 2015, an estimated RM42.26 billion was required to repay the loans which would mature between November 2015 and May 2039.

“1MDB needs to prepare large sums to fulfil its obligations – RM4.88 billion in 2016, RM14.74 in 2023 and RM5.14 billion in 2039 “ the auditor-general said in the report.

The AG said an analysis of the financial statements of 2010 to 2014 showed 1MDB’s paid-up capital was only RM1 million.

“This small amount showed that the company was not (financially) stable because it required to borrow for its activities. Throughout financial years 2010 until 2014, 1MDB obtained 17 loans (not inclusive of inherited loans) at a nominal value of RM42.88 billion but received cash amounting to RM39.17 billion.

“However, (the company’s) activities which were funded by loans did not generate the necessary cash flow to repay the loans,” the AG was quoted as saying in the report.

Former prime minister Najib Razak ordered the audit in 2015 following allegations of misappropriation involving billions of ringgit at the state fund, but then classified the report as secret when it was completed.

Najib has been accused of embezzling RM2.6 billion from 1MDB. The sum was found in his personal accounts. He denied wrongdoing and said the money was a donation from Saudi royalty.

The US Department of Justice has identified Low Taek Jho, a close associate of Najib’s, as a key player in the scandal, in which as much as US$4.5 billion have been misappropriated.

Reopening the investigation into 1MDB was one of Pakatan Harapan’s key campaign promises before the May 9 elections. – May 15, 2018.