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Issues  |  NOVEMBER 10, 2014 12:00AM

Seeking clarity in 1MDB’s murky FY14 accounts

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For 1Malaysia Development Bhd (1MDB), paper profits from revaluing its properties were not enough to offset higher expenses and borrowing costs in the financial year ended March 2014 (FY14), marking its first full-year loss in four years. The state investment fund booked  losses despite revenue rising by two-thirds for FY14. Billions in borrowed money parked in the Cayman Islands and other locations gave a return on investment of only 3.3%, with the average interest rates that 1MDB was earning through its nearly RM4 billion deposits with licensed banks only coming to 0.68% per annum. 1MDB also paid up to US$250 million (RM833 million) to Aabar Investments PJS to have an unexercised option over its power assets cancelled.



 
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