{"id":16566,"date":"2015-06-05T11:41:10","date_gmt":"2015-06-05T03:41:10","guid":{"rendered":"http:\/\/v3articles.imoney.my\/?p=16566"},"modified":"2015-06-10T14:47:47","modified_gmt":"2015-06-10T06:47:47","slug":"breakdown-1mdbs-rm42-billion-debts","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/breakdown-1mdbs-rm42-billion-debts","title":{"rendered":"Breakdown: 1MDB\u2019s RM42 Billion Debts"},"content":{"rendered":"
Last week, Arul Kanda Kandasamy, the CEO of 1Malaysia Development Bhd (1MDB), clarified on how the debt-ridden company spent the RM42 billion.<\/p>\n
\u201cWe provide a summary of what the RM42 billion debt has been used for, information that is fully disclosed in 1MDB’s audited and publicly available accounts from March 31, 2010, to March 31, 2014.<\/p>\n
\u201cWe trust this clarification will help to clear any confusion on this matter,\u201d Arul said.<\/p>\n
However, according to a report by The Edge Malaysia<\/a><\/i>, the figures given by Arul was merely a breakdown, with no explanation of why 1MDB is in the current financial distress that it is in today.<\/p>\n The company has been under-fire as it is on the verge of collapsing under the heavy debt burden, where its income cannot meet its expenses.<\/p>\n With a net cash flow deficit of RM2.6 billion in financial year 2014 (FY14), 1MDB has continued to borrow to service old debts.<\/p>\n According to Arul\u2019s statement, RM18 billion was spent on the purchase of IPPs while RM15.4 billion was invested into funds such as Brazen Sky and Aabar Investments.<\/p>\n Here is the breakdown of the RM42 billion debt:<\/p>\n