Cash, assets or units? Malaysians react online after conflicting statements on 1MDB

Conflicting statements from the prime minister and others involved in the 1MDB saga have led to Malaysian social media users venting anger online. – The Malaysian Insider file pic, May 22, 2015.

Malaysians are calling for heads to roll after Putrajaya yesterday admitted that 1Malaysia Development Bhd's (1MDB) investments redeemed from the Cayman Islands to Singapore were not actually in cash as previously claimed.

Social media users vented their frustration on Facebook and Twitter, calling the government "liar" and demanded that those responsible for the gaffe step down immediately.

"It wasn't a mistake. The finance minister actually lied to us abt 1MDB's cash in Singapore," said Umar Akif through his Twitter handle ‏@JustAkifff.

Benedict Tan said on Facebook: "It's not a mistake... it's a deliberate lie and all involve should be sacked and actions be taken on them."

"So the hard cash was not there at all in Singapore bank kan...? So you lied kan...? #1MDB," added @taxi_driver21.

Second Finance Minister, Datuk Seri Ahmad Husni Mohamad Hanadzlah yesterday said that only “units” existed in the BSI Bank Limited Singapore account.

“There was a mistake in the sense that, the impression when they (1MDB) said they have redeemed and saved in the Singapore bank, the impression is that there’s cash. Actually, that is savings,” Husni had said.

“They are units, backed by sovereign wealth funds. We hope that we can bring it back as soon as possible.”

When asked what form of units existed in the account, Husni replied: "Units. Just units".

Just two months earlier, Prime Minister Datuk Seri Najib said that the remaining US$1.103 billion (RM4.08 billion) of 1MDB’s investment funds - in cash - had been transferred to its account in BSI Bank.

"The remaining US$1.103 billion (RM4.08 billion) of 1MDB's investment funds managed by the Cayman Monetary Authority has been redeemed in cash and is kept in US currency by the BSI Bank Limited Singapore (BSI Singapore)," Najib said in a written reply to a question raised by DAP lawmaker Tony Pua in the Dewan Rakyat on March 10.

But in another reply to Pua on Tuesday, Najib said the balance of the investment redeemed by 1MDB were assets in US dollars for the purpose of balancing its liabilities which were also in US dollars. He also said this latest answer was an "amendment" to the earlier one.

1MDB president Arul Kanda Kandasamy, in February, had also assured that the cash was in the state investment vehicle's account in BSI.

"The cash is in our accounts and in US dollars. I can assure you (about that)... I have seen the statements," he was quoted as saying in an interview with Singapore's Business Times.

The discrepancies riled up several Twitter users who shared screen shots of Arul's interview.

"But... but... Arul Kanda back in February said 1MDB's money in Singapore is in CASH and he had seen it! So how lah?" said Boyfriend From Hell (‏@The_Endie).

On Facebook, Roslan Othman noted that the amount involved billions of ringgit and urged "incompetent" officials to immediately step down.

"Incompetent officers should just step down. This is no playing matter. It involves a lot of money and it is the people's money. It is best if you resign now and give the trust and responsibility to those more competent otherwise the people's money will be finished and the country will be destroyed," he said.

"You don't make mistakes like that...US$ some more...goes to show how incompetent the MOF is ... cannot differentiate between CASH and non-cash assets !!!!!," added Tan Sri Lai.

Rusty Blade ‏@PisauKarat told Husni: "Entah mcmana ahli Umno boleh pilih korang jd pemimpin mereka" (I don't know how Umno members chose you to be their leader).

"USD1.103b make mistake? All the minister should be sack. Including the the finance minister. You think the rakyat are all fools?" said Andy Soo.

Henry Tai said, "Making a mistake over such an humongous amount of monies (public funds) is unacceptable and should really vacate your position immediately."

Kassim Kushairi Zailani said, "It must be in Unit Trusts then. They call themselves Finance Minister but haven't got a clue about financial instruments in the financial markets. Shame on them!!!"

- TMI