‘Jho Low got Najib to guarantee 1MDB loans’
(Malaysiakini) – Flamboyant billionaire Jho Low convinced Prime Minister Najib Abdul Razak to get the government to guarantee the loans of 1MDB, former prime minister Dr Mahathir Mohamad claims.
This was after Jho Low persuaded Najib to make 1MDB’s pecedessor, Terengganu Investment Authority (TIA), into a sovereign wealth fund to raise RM5 billion using Terengganu’s oil fields as collateral, but this was opposed by the state palace, Mahathir said.
“Jho Low then advised Najib that the federal government should guarantee the loan,” Mahathir declared in his blog posting today.
However, the former prime minister claimed, all this was done without the knowledge of the cabinet.
“Strictly speaking such a matter should be discussed and approved by the cabinet.
“There is no evidence that a cabinet paper was prepared and presented for approval, despite the amount being unusually big. In fact, for a long time, the cabinet was not aware of this,” he said.
RM5 billion loan on unfavourable terms
Furthermore, Mahathir said, 1MDB obtained the RM5 billion loan, with government guarantee, on unfavourable terms.
“It is not clear whether any government department or agency scrutinised the terms of the loan.
“But the terms were very unfavourable to 1MDB and the government,” he said.
