Muhyiddin’s statement misleading, says 1MDB

The former deputy prime minister is fully aware of 1MDB’s capital structure and that the company’s assets exceed its debt.

(Bernama) – Former deputy prime minister Muhyiddin Yassin’s statement characterising the 1Malaysia Development Berhad (1MDB) as a “debt-laden company” is misleading, says 1MDB.

In a statement here today, the state-owned company said Muhyiddin, as a former Cabinet member, “knows full well that the value of 1MDB’s assets exceeds its debt”.

“As a Cabinet member when 1MDB was formed, Muhyiddin is fully aware of 1MDB’s capital structure. With RM1 million in equity from its shareholder, the finance ministry, 1MDB raised capital on the markets – which is the debt on the company’s accounts,” it said.

The statement also added that 1MDB regretted that despite repeated clarifications, certain current and former politicians continue to issue half-truths about the company.

“It is now clear that this is part of a deliberate and politically-motivated attack to sabotage not only our previously planned energy IPO but the ongoing implementation of our rationalisation plan,” it said.

It added that many businesses both in Malaysia and abroad, had used debt to successfully build their asset base.

It said that in 1MDB’s case, from RM1 million equity, total group shareholder equity of RM1.7 billion was generated as of March 31, 2014.

“Notwithstanding the subsequent and ongoing challenges, which are well documented and acknowledged, 1MDB remains confident of generating surplus value as we progress with the rationalisation plan.”