RM3 BILLION CASH INJECTION REQUEST FROM M’SIAN CABINET SHOWED 1MDB IN DEPTH OF TROUBLES?

Former deputy prime minister Tan Sri Muhyiddin Yassin(photo) today said he realized the seriousness of 1Malaysia Development Berhad's (1MDB) controversy after the debt laden firm sought a RM3 billion cash injection from the Cabinet earlier this year, which was rejected.

"That was when I realized how serious this was. They just received RM2 billion from Tan Sri Ananda Krishnan(photo) and now they were seeking RM3 billion from the cabinet," Muhyiddin said in his speech during a "Bicara Minda" dialogue organised by publisher Karangkraf and Sinar Harian in Johor Baru today.

• Muhyiddin, who was dropped as Datuk Seri Najib Razak's deputy in July, said he expressed his concerns to the prime minister after seeing the proposal.
• Najib is also the finance minister and chairman of 1MDB's advisory board.
• "They just took on more debts to settle previous debts, it was like a mountain of debts, layers after layers," Muhyiddin said.
• The Malaysian Insider had also reported in February that the RM3 billion cash injection sought by 1MDB from the cabinet was rejected.

Muhyiddin in his speech described 1MDB not as a sovereign wealth fund, but a "sovereign debt fund".

The Finance Ministry-owned firm, meant to be a strategic investor and a catalyst for new development, is now undergoing a restructuring exercise to shave off its debts.

Source: The Malaysian Insider...More...