Daim advises 1MDB to come clean on Cayman Islands
“The rakyat have the right to ask. It is only fair given that a huge sum is involved.”
(Free Malaysia Today) – Former Finance Minister Daim Zainuddin told a luncheon talk organised by Malaysian Industrial Development Finance Bhd (MIDF) here on Thurs that 1Malaysia Development Berhad (1MDB) should keep in mind that the people have a right to expect transparency and accountability from it as taxpayer funds are involved.
The sovereign fund’s move to have some of its funds in the Cayman Islands, he warned, was raising more questions than providing answers.
“The fear is that this is too secretive. The board should come out and explain. Why should money be put in Cayman Islands?” he asked the luncheon crowd. “We are entitled to some answers.”
“I don’t think that 1MDB has been unfairly criticized. The rakyat have the right to ask. It is only fair given that a huge sum is involved.”
Criticism of 1MDB has stepped up recently on a host of issues including the alleged purchase of assets at inflated prices and paying exorbitant fees for the issuance of debt papers.
1MDB claims that its RM 44 billion in assets exceeds its debts which have reached RM 32.65 billion.
The sovereign fund said in a statement on Thurs that it has redeemed more than RM 4 billion, about half its US$2.3 billion (or about RM 7.68 billion) in the Cayman Islands, from its investments in segregated portfolio companies (SPCs) registered on the island.
The balance would be redeemed by the end of this month, the statement added.
Deputy Finance Minister Ahmad Maslan meanwhile informed Parliament on Thurs the balance would be pulled back by the end of this year.
“The return as at the end of 2013 for this investment was at about 6 to 7 percent,” he said.
“It has also been made clear that there are no third party payments.”
