Shafie: 1MDB insulting the rakyat’s intelligence
Umno vice-president finds it peculiar for fund to invest in illiquid assets requiring bailout
(Free Malaysia Today) – Umno vice-president Shafie Apdal has accused the government investment arm 1Malaysia Development Bhd of insulting the people’s intelligence with its responses to many unanswered questions.
He said many details about matters of concern to the people had not been addressed yet.
As examples, he questioned the company’s land acquisitions in Penang and Port Klang, which he said remained unproductive. There were also questions about transfers of billions of dollars into third party accounts which had all gone unanswered.
“1MDB’s constant response, that its assets exceeded its debt, and that hence everything was normal, is truly an insult to the intelligence of all Malaysians,” said Shafie, who was minister for rural development until he was abruptly dismissed in a Cabinet reshuffle in late July.
Shafie said he found it peculiar that an entity heavily dependent on sovereign guarantees and third-party guarantees to raise funds had invested in highly illiquid assets that eventually required a bailout through a guarantee to realise the underlying value.
“Although debt rationalisation is in progress, we must also never forget that because of lack of transparency and good governance, the nation is paying a heavy price,” Shafie said.
