Cash handouts will not make the Malays forget about the colossal sum found in Prime Minister Najib Abdul Razak’s personal bank accounts, said Dr Mahathir Mohamad.
“Najib thinks the Malays are stupid. (He) gives money directly to the Malays, (in hope that) they won’t question what happened to the US$600 million (in the bank accounts).
“But Malays are not as stupid as Najib thinks. They already realise that the missing money belongs to them. The debts would be borne by them and their descendants,” he said in a blog post.
He said these debts would be financed by the public through higher taxes, including an increase in GST.
Najib has denied abusing public funds for personal gain and claimed that the RM2.6 billion in his account was a donation from a member of the Saudi royal family.
Attorney-general Mohamed Apandi Ali has also cleared the prime minister of any wrongdoing.
Najib has blamed the allegations levelled against him on those conspiring to topple him from power to further their personal political interests.
Meanwhile, Mahathir also questioned if Putrajaya was incapable of fulfilling 1MDB’s debt obligation to Abu Dhabi’s International Petroleum Investment Company (IPIC).
He stressed that 1MDB is wholly-owned by Putrajaya and therefore, it is the federal government that has failed to settle the payment.
“Why? Are we out of money?” he asked.
OUT OF MONEY
Mahathir said a company which borrowed money for investments would have assets which can be liquidated to pay debts.
“Even if it is at a loss, some of those investments or assets could be sold even if it just fulfils partial repayment.
“But the government did not pay. What happened to the money that was borrowed (for investments) and properties? Where is the money that was borrowed?” he asked.
Mahathir, a former finance minister himself, also raised suspicion that Putrajaya’s decision to issue an RM2.5 billion bond was related to 1MDB’s missed US$602million (RM2.57 billion) payment to IPIC.
“Even if they managed to raise enough to pay the debt, the question of what happened to the money (originally) borrowed (by 1MDB) has yet to be answered.
“(Moreover), borrowings through bonds must be paid back,” he said.
Second Finance Minister Johari Abdul Gani has denied speculation that the bond, to be issued on Aug 4 and matures in 20 years, had anything to do with 1MDB.
He said it was a normal bond to finance the cost of running a government in a deficit position.
– M’kini
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