NAJIB Razak ticked off Lim Guan Eng tonight, saying the finance minister must give the full facts about 1Malaysia Development Bhd’s (1MDB) RM7 billion debt repayment, which he insisted was not a bail out.

In a second posting to his Facebook account tonight, the unusually loquacious defeated former prime minister said Lim’s allegations that the Finance Ministry (MoF), Khazanah Nasional Bhd and Bank Negara Malaysia had to “bail out” 1MDB was misleading.

“Not only is this misleading, it is a politically-motivated attempt to obscure the facts,” Najib said in his posting.

Najib and his Barisan Nasional (BN) were trounced in the May 9 polls, winning only 78 federal seats and keeping two states – Perlis and Pahang. Sarawak remains in the fold as its last state election was in 2016.

The country’s sixth prime minister is now being investigated for suspected wrongdoing after a total of RM114 million in 26 currencies, 37 luggage bags of jewellery, 284 boxes of designer bags with an additional 150 bags were seized from three condominiums in the luxurious Pavilion Residences in downtown Kuala Lumpur.

Najib cited recommendations of the Public Accounts Committee (PAC) report on 1MDB that all of the state fund’s valuable and strategic real estate assets were transferred to other companies owned by MoF Inc.

“Over time, these prime real estate assets can be worth more than RM30 billion,” he added.

The former Umno president noted that while MoF Inc took over the assets, the debt or liabilities of 1MDB remained in the company.

“Accordingly, the arrangement, as I can confirm, is for MoF Inc to service 1MDB debts, but in return for taking over the assets.

“Put another way, had those assets remained in 1MDB, it could have developed and sold the assets on its own, and used the proceeds to pay its debt,” said Najib, who remains the Pekan MP.

He insisted that to meet its obligations, the MoF can use various methods, including sale of land (eg to Bank Negara Malaysia) or by collecting debt repayments (eg from Khazanah).

“There is nothing wrong with such transactions, as each was approved per the relevant governance frameworks, were conducted on an ‘arm’s length’ basis and followed the correct laws and procedures.

“Therefore, the question of MoF or BNM or Khazanah bailing out 1MDB does not arise at all. It is in fact downright misleading to make such allegations. MoF Inc took over assets and it must be responsible for the liabilities – that is the only correct way, legally and accounting-wise,” Najib said.

He insisted that it was wrong of the finance minister to “only highlight the debts of 1MDB”.

“By right, the finance minister must also inform the public about the assets of 1MDB that have been taken over.

“The finance minister must ‘walk the talk’ on CAT.  He has to be transparent to tell the full story and not just half a story in order to deceive,” said Najib, who was also the finance minister in his BN government and formerly chairman of the 1MDB advisory board. – May 25, 2018.