KUALA LUMPUR – The remaining funds in 1MDB’s Assets Recovery Trust Account are only sufficient to repay debts and principal for this year but are insufficient to cover outstanding payments from 2023 to 2039.
This was revealed by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz in a written parliamentary reply during the Ministers' Question Time (MQT), that was read out by religious minister Datuk Idris Ahmad. Tengku Zafrul was absent during today‘s sitting.
Deputy Dewan Rakyat Speaker Datuk Mohd Rashid Hasnon (Batu Pahat-Bersatu) said the decision to allow Idris to respond, instead of the deputy finance ministers, is because the MQT can only be replied by ministers.
According to the minister, the balance in the trust account today stood at RM15.76 billion, which he said was even insufficient to cover for the entirety of the RM16.18 billion due this year.
To make up for this shortfall, Tengku Zafrul said the government has allocated an additional RM1.53 billion for the purpose of interest repayment for 2022.
“Based on the cash flow of 1MDB debt repayment, by taking into account the expected settlements to be received in the future, the government must still cover a shortfall of RM17 billion of the RM38.8 billion debt from 2022 to 2039.”
The future settlements involve RM515 million from Ambank and US$954 million (RM4 billion) of assets to be recovered from Goldman Sachs.
Tengku Zafrul was responding to questions raised by Karupaiya Mutusami (Padang Serai-PH) pertaining to the debts involving the former state investment arm during Ministers’ Question Time.
Elaborating further on the issue, Tengku Zafrul reiterated that the government has to date recovered RM19.14 billion in 1MDB assets which had been or will be used to repay the debts.
As of February 28 this year, he said RM3.31 billion of the amount has been utilised to settle bond and sukuk interests.
This is on top of the RM10 billion that the Finance Ministry and Minister of Finance Incorporated have issued as loans for the commitment repayments.
According to Tengku Zafrul, the government also today owes Retirement Fund Incorporated (KWAP) RM610.22 million due to loans provided for the 1MDB debt repayment.
This, he said, is scheduled for repayment on March 28 and which will be paid by government funds.
The minister said between 2014 and February this year, a total of RM4.74 billion of public funds have been used to repay KWAP while RM314.72 million of the debt was paid by SRC International. – The Vibes, March 17, 2022
.jpeg)
