Treasury sec-gen: No more selling assets to pay 1MDB debts after 2018

 

PARLIAMENT | Putrajaya had stopped selling assets to pay for 1MDB’s debts after the change of government in 2018.

This was conveyed by Treasury secretary-general Asri Hamidon to the Public Accounts Committee (PAC) during a committee proceeding on July 27.

“No more selling of government assets in order to pay any coupon related to 1MDB,” said Asri, according to the transcripts of the proceedings.

Instead, he said payments of 1MDB debts were now done transparently through the Consolidated Fund.

Treasury secretary-general Asri Hamidon

The proceeding was called to ascertain the follow-up actions taken by the Finance Ministry on recommendations by the PAC on Bank Negara’s procurement of “Lot 41”, a piece of land adjacent to the Sasana Kijang complex belonging to Bank Negara in Kuala Lumpur.

“The PAC was informed that Bank Negara will improve its due diligence and obtain valuations from at least two sources. All procurement decisions will also have to go through several committees.

“The PAC was also informed by the Treasury secretary-general that after the change of government in 2018, all payments for the 1MDB rationalisation plan have been transparent.

“There were no more government assets that were sold to repay 1MDB debts,” said the PAC in its latest report.

In 2017, Bank Negara acquired Lot 41 for RM2.07 billion.

Following an investigation, the PAC concluded that Bank Negara rushed into acquiring the land at a 46 percent premium.

The PAC also concluded that the proceeds from the sale were used for payments under the 1MDB rationalisation plan on Dec 31, 2017.

The PAC published its report on the acquisition in December 2021. At the time, the PAC reported that no new works have been performed on the land.

In January 2018, Bank Negara announced that it had acquired the 55-acre land for its Global Islamic Finance University and the International Shari’ah Research Academy for Islamic Finance.

Details of Bank Negara’s acquisition of Lot 41 only came to light after the Pakatan Harapan government was formed in May 2018. - Mkini