Putrajaya to pursue WSJ claim on 1MDB, says Guan Eng

Chan Kok Leong Chan Kok Leong Updated 7 years ago · Published on 8 Jan 2019 10:45AM · 4 Comments

Finance Minister Lim Guan Eng says the government will check the records on a number of China-backed projects, which were allegedly inflated to bail out 1MDB. – The Malaysian Insight pic by Nazir Sufari, January 8, 2019.

PUTRAJAYA will pursue a claim in a report today that the 1MDB debt was factored into the cost for the East Coast Rail Link and Sabah pipeline projects, said Lim Guan Eng.

But as it stands, the government is unaware of the revelations made by The Wall Street Journal today.

“We know the price was inflated. But we will have to check the records. I’ll be interested to get a copy of those minutes by WSJ,” said the finance minister after handing over RM25 million for religious schools (sekolah pondok).

The cost of the ECRL and Sabah pipeline projects was inflated, he said.

“In the Sabah pipeline project, RM8.3 billion or 88% of the project cost has been paid even though work done was only 10%.

“Something’s definitely wrong there, isn’t it?

“But I have to refer back to see if there are details or things explicitly said. If this is said, this is something we will pursue,” said Lim.

The WSJ reported today that Malaysian officials in the Barisan Nasional government and China factored in 1MDB’s debts when they were negotiating the two projects.

“Minutes of the Chinese-Malaysian meetings say that although the projects’ purposes were ‘political in nature’ – to shore up Najib Razak’s government, settle the 1MDB debts and deepen Chinese influence in Malaysia – it was imperative the public see them as market-driven,” said the newspaper.

It said the projects were financed at above-market values to generate excess cash for other needs. – January 8, 2019.

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Comments

  • Good reason for our country to walk away from the ECRL and the Sabah pipeline projects considering that these projects have involved massive corruption and are not financially viable. Furthermore the reason for China to fund the projects are for political interference and preying on the weakness of a corrupt PM and his corrupt government then.

    Posted 7 years ago by Rupert Lum · Reply

  • PH govt must charge Najib Razak & Rahman Dahlan for economic sabotage & treason! Shame on EMPEROR XI for colluded with Najib to force lopsided contracts of ECRL & TSGP on Malaysia. Malaysia are not at the MERCY of China, rite? ECRL are a project designed to cater for China military strategies at the expense of Malaysia taxpayers. There is no free lunch in this world, China in this case clearly demonstrated it is making Malaysia economic hostages thru both lopsided contracts. SHAME & DISGRACE on Emperor XI indeed!

    Posted 7 years ago by SUARA RAKYAT MSIA · Reply

  • Jibby, Lokman & Umno why the silent? Are you not going to sue WSJ? For Jibby after May 9 were you really wanting to act like a PM, its all too late as you were sleeping at work since your motto Cash is King which would removed all issues and problems and it shows how incompetent you are

    Posted 7 years ago by Teruna Kelana · Reply

  • If it is true that there was collusion between the China companies and the Malaysian government under UMNO to inflate costs to generate funds for other purposes, then those projects should be CANCELLED and not re-negotiated. There should be no two ways about this. Please get WSJ to show the evidence in the minutes. If true, then we must see outright CANCELLATION of all the tainted, corrupted, projects.

    Posted 7 years ago by Ravinder Singh · Reply