1Malaysia Development Bhd (1MDB) has given a breakdown of how the RM42 billion debt raised by the strategic development company was used contrary to speculation and criticism that money was alleged to be “lost” or “missing”.
The debt was used to buy power assets and land, for financial expenditure, to deposit in investment funds, leaving a surplus cash of RM900million , all of which totalled RM41.8 billion, said 1MDB Chief Executive Officer Arul Kanda Kandasamy in a statement.
He said information on how the debt was used is fully disclosed in the audited and publicly available accounts from March 31, 2010 to March 31, 2014.
“RM18 billion was used to finance the purchase of power assets like Powertek Energy Sdn Bhd (RM8.5 billion), Kuala Langat Power Plant (RM2.3 billion), Jimah Energy (RM1.2 billion) while the remaining RM6 billion was inherited debt,” Arul Kanda said.
1MDB Infographics 21MDB spent RM0.2 billion for the purchase of the TRX land, RM0.4 billion for Bandar Malaysia land and RM1.1 billion for the Air Hitam land in Penang.
On the RM5.8 billion financial expenditure incurred, RM4.5 billion was used as finance cost and working capital, RM0.9 billion for foreign exchange costs and taxes amounted to RM0.4 billion.
1MDB also deposited RM15.4 billion in investment funds such as Brazen Sky (RM6.1 billion), Aabar Deposit (RM4.2 billion) and 1MDB GIL Find (RM5.1 billion).
“In recent weeks, there has been much speculation about the use of RM42 billion of debt raised by 1MDB, and more specifically that RM27 billion of debt proceeds are alleged to be “lost” or “missing”.
“We trust this clarification will help clear any confusion on this matter,” Arul Kanda added.
