Najib: Public funds not used in settling 1MDB’s woes

Prime Minister Datuk Seri Najib Tun Razak on Monday stressed that public funds were not being used to resolve 1Malaysia Development Berhad (1MDB)'s financial woes.

"An end to the issues faced by 1MDB is forthcoming, as I had promised six months ago.

"What we are glad about is that we are resolving it not by way of a memorandum of understanding (MoU) but through an 'agreement', without touching any of the people's money," he said at the monthly assembly for the Prime Minister's Department here.

Last Nov 23, Edra Global Energy Bhd, a subsidiary of 1MDB sold off its assets to China General Nuclear Power Corp and its subsidiaries (CGN Group) for RM9.83bil.

In a sale and purchase deal with CGN Group, 1MDB, Edra and its subsidiaries let go of their 100% ownership in Edra Solar Sdn Bhd, Edra Energy Sdn Bhd, Powertek Energy Sdn Bhd, Jimah Teknik Sdn Bhd, Jimah O and M Sdn Bhd, Mastika Lagenda Sdn Bhd and Tiara Tanah Sdn Bhd.

The transaction is expected to be completed in February this year.

On Dec 31 last year, 1MDB inked a sale and purchase agreement with the IWH CREC Sdn Bhd consortium involving 60% of its equity in Bandar Malaysia Sdn Bhd for RM7.41bil.

The Bandar Malaysia project is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corporation (M) Sdn Bhd.

Najib in his New Year 2016 message said 1MDB had lessened its debts by  RM40.4bil after signing a number of agreements.

1MDB was earlier reported to have amassed a debt of RM42bil, as of March 31, 2014.