1MDB not taxpayers’ money, says Najib

Prime Minister Datuk Seri Najib Razak says 1MDB's problems are the result of the negative public perception that has hampered the public listing of its energy arm. – The Malaysian Insider pic by Nazir Sufari, August 1, 2015.1Malaysia Development Berhad (1MDB)'s woes do not involve taxpayers' money, Prime Minister Datuk Seri Najib Razak said today, stressing that 1MDB as a business entity had merely loaned money from third parties.

"This is not the people's money," he said while officiating Seremban Umno's AGM in Paroi, Negeri Sembilan, today.

Najib, who is also Finance Minister and chairman of 1MDB's advisory board, said the state investment firm's problems were due to negative public perception that has hampered the public listing of its energy arm.

"If you want to list a company, the perception must be positive.

"Because we couldn't list it, it created the mismatch that caused a cash flow problem," he said, stressing that the company's troubles are not "as bad" as people make it out to be.

1MDB is owned by the Finance Ministry, set up in 2009 as Najib's brainchild to spur economic growth through global partnerships and foreign investments. The firm says it has never received public funds other than RM1 million at the time of its inception.

The firm is under intense scrutiny over its RM42 billion debts incurred in just six years of operations, and companies linked to it have been implicated in another scandal allegedly involving US$700 million (RM2.6 billion) which are said to have been channelled to Najib's personal bank accounts.

Najib also revealed that the government has formulated plans to "turnaround" 1MDB.

"There are plans, but we can't do it overnight. Our plan is to be implemented over six months," he said.

He revealed that leaders from Qatar and China have expressed interest in investing in 1MDB's energy arm, Edra Global, and also its flagship Bandar Malaysia project.

"The China ambassador and the Emir of Qatar have both expressed their interests. What does this tell you? That there is value here. That the assets are there. The money is not missing," he said.

"Not only them, there are several other countries that are interested too," he added.

- TMI