Cabinet rejects RM3 billion aid for 1MDB
The cash injection would have to be done within the next five weeks.
(Free Malaysia Today) – Members of the Federal Cabinet, it has been learnt, on Wednesday rejected by a majority an item in the Minutes of the previous meeting on funding the 1Malaysia Development Board (1MDB) to the tune of RM3 billion.
It could not be immediately established why the item was in the draft minutes for reading and confirmation this Wednesday if a decision had not been taken on the matter on Wednesday last week.
The Malaysian Insider quoted an unnamed source on Friday as confirming that “the Cabinet rejected the proposed RM3 billion cash injection for 1MDB”.
1MDB is not a sovereign wealth fund as widely reported but a government-owned company set up for investment in strategic areas. The Finance Ministry gave an initial RM1 million to set up the company. It has also guaranteed several loans in the billions taken by the company and provided letters of support for other loans.
It appears that the RM3 billion cash injection would have to be done within the next five weeks, i.e. by March 31 when 1MDB’s financial year ends.
The Finance Ministry raised RM2.1 billion on February 11 and 12 through two treasury bills which, according to money market dealers, was reportedly for 1MDB.
