corporate
true
Issues  |  APRIL 24, 2014 6:34AM

1MDB, an unfolding disaster

Story by
[email protected]

1MDB Issue in story banner

The delayed, much-awaited accounts of state investment fund 1Malaysia Development Holdings Berhad (1MDB) is finally available and KiniBiz pored over the numbers. Not only is the fund’s RM7-billion investment in the Cayman islands out of its control, but its RM877-million pre-tax profit for FY13 was merely paper gains as RM2.73 billion in property revaluation offset RM1.8 billion in actual losses. Impairment of goodwill is another cause for concern as far as 1MDB’s estimations are concerned, said new auditors Deloitte. And not only did 1MDB overpay by RM1.2 billion for its power assets, but it was revealed that Abu Dhabi entity Aabar Investments and Ananda Krishnan-linked Tanjong have an option to take up a substantial part of 1MDB’s power assets. These on top of 1MDB’s strangely huge RM23-billion cash pile against debts of RM36 billion. Is 1MDB a disaster unfolding before our very eyes?



 
Comments
comments powered by Disqus
 
181857
1
1
1
0
latest
1