THE directors of 1Malaysia Development Bhd have confirmed the state investor is insolvent and unable to repay its debts, said Finance Minister Lim Guan Eng

Lim said former 1MDB chief financial officer Azmi Tahir had also written to the ministry in March to say 1MDB will not able to service the interest on its loans due this and last month.

Lim said when 1MDB president Arul Kanda Kandasamy was questioned about this today, he had replied that he was on garden leave until the end of his contract in June next year

“Therefore, he claimed that he is in the dark as to the financial situation of the company,” he said in a statement after meeting the 1MDB board and Arul Kanda today.

Lim said he asked the board of directors what had happened to the US$940 million of investment “units” previously held with BSI Bank, Singapore as well as the US$1.56 billion in overseas investment funds held by 1MDB Global Investments Limited.  

“Together, these investments are worth purportedly some RM9.8 billion, which if redeemed, would be more than sufficient to meet 1MDB’s financial obligations for the next few years.”

Lim said the board of directors’ reply was that they had repeatedly disputed the value and even the existence of these investments during the monthly board meetings.

“This is because the 1MDB management has repeatedly failed to supply the board with any evidence of the existence of these investments over the past two years. Kamal Mohd Ali has called these 1MDB investments a scam,” said Lim

However, Lim said Azmi Tahir had insisted that these “investments” existed even though BSI Bank had wound up.

“He gave the unbelievable excuse that the fund managers refused to communicate with 1MDB in writing because of the ongoing investigations of the United States Department of Justice,” said Lim. – May 23, 2018.