Najib: Claims about start-up funds for 1MDB untrue

Najib: Claims about start-up funds for 1MDB untrue
Prime Minister Datuk Seri Najib would have attended the event but it was called off on the orders of Inspector-General of Police Tan Sri Khalid Abu Bakar due to safety reasons.

Claims that 1Malaysia Develop­ment Bhd (1MDB) had received a start-up fund of RM500mil (S$185mil) is not true, said Finance Minister Datuk Seri Najib Tun Razak.

He said there was no basis for the claims made by an opposition MP that Terengganu Investment Authority (TIA) had received the fund before it became 1MDB.

"From the information given by 1MDB to the ministry, the claims are not true," Najib, who is Prime Minister, said in a written reply.

He was responding to a question from Mohamed Hanipa Maidin (PAS-Sepang) who asked whether the authority, set up in 2008 before 1MDB, was given a capital of RM500mil.

Najib said the Federal Govern­ment took over the authority from the Terengganu state government on Sept 25, 2009, with a price of RM1,000,002.

Its name was later changed to 1MDB, he said.

It was reported that the authority was expanded into 1MDB with the aim of investing in the energy, real estate and hospitality sectors in the country.

In a separate written reply, Najib said 1MDB was confident and able to settle all the necessary loans according to their payment sche­dules for the 2015 financial year.

"1MDB will also ensure that the previous incident will not recur," he said, referring to the RM2bil the 1MDB owed to local banks but was later settled.

Jeff Ooi (DAP-Jelutong) had asked the Prime Minister to state the amount and repayment schedule for 1MDB loans that must be paid for 2015 so that the incident in February did not recur.

It was reported on Feb 14 that 1MDB had settled the RM2bil loan it owed local banks, in advance of the due date.

Meanwhile, Datuk Seri Dr Shahidan Kassim said the Auditor-General was not given a time frame to study and audit the accounts of 1MDB.

The Minister in the Prime Minister's Department said the audit on 1MDB was being conducted now.

The Attorney-General's Chamber has ordered the police to give ­priority to the Auditor-General to obtain the relevant documents without any interference for the purpose of its audit, he said in reply to Datuk Othman Abdul (BN-Pendang).

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