From FMT News
The Finance Ministry changes its mind again on who helped to settle 1MDB’s RM2 billion loan.
PETALING JAYA: In the latest disclosure on the 1Malaysia Development Bhd (1MDB) controversy, second finance minister Ahmad Husni Mohamad Hanadziah told Parliament today, that tycoon T Ananda Krishnan’s Tanjong Public Limited Company helped settle the RM2 billion loan to banks in February.
Two weeks earlier, the Finance Ministry had stated in a parliamentary written reply that 1MDB had used its own Cayman Island funds to settle the RM2 billion debt, and not as reported, with Ananda’s help.
Today, Ahmad Husni revealed that it was Tanjong that had arranged for the funding from private investors in the form of refinancing, with the principal to be paid in 15 months, and the interest in six months, The Malaysian Insider reported.
He said that there was no exchange risk as the loan was from private investors, and not from Tanjong.
On February 13, The Malaysian Insider reported that 1MDB had settled the loan a day before with intervention from Ananda, whose company Usaha Tegas had guaranteed it.
However, 1MDB president and group executive director Arul Kanda Kandasamy had dismissed this as mere speculation.
The RM2 billion is part of a RM5.5 billion bridging loan to the relevant banks taken by 1MDB subsidiary, Powertek Investment Holdings Sdn Bhd, to refinance a RM6.17 billion bridging loan taken in 2012.
It was to part finance the purchase of power assets.
The ministry’s earlier written reply said that the government-owned strategic investment fund had withdrawn its US$2.318 billion (RM8.5 billion) offshore savings in the Cayman Islands in two tranches, and had used the first tranche to pay back “loan interest, working capital and other scheduled commitments”.
This tranche was US$1.215 billion (RM4.46 billion), while the second tranche of US$1.103 billion (RM4.05 billion) was still kept in foreign currency at BSI Bank Limited Singapore.
The second tranche, the ministry said, would be used to repay loans in foreign currency that were due this year.
IMAGE: Ahmad-Husni_1mdb_300
For more on this story go to: http://www.freemalaysiatoday.com/category/nation/2015/03/25/1mdb-settled-was-it-cayman-ananda-or-private-investors/

Related story:
Singapore’s central bank in touch with Malaysia on 1MDB probe
From The Star
KUALA LUMPUR: Singapore’s central bank said on Tuesday it was in touch with Malaysia’s regulators over its investigation into state fund 1MDB.
“We are committed to assist within the full ambit of our laws,” said the Monetary Authority of Singapore in a statement to Reuters, adding it could not provide more details as investigations in Malaysia were ongoing.
The body was responding to questions about whether it had been approached by Malaysia to help with investigations into 1MDB.
1MDB redeemed US$1.1bil (RM4bil) from the Cayman Islands and subsequently parked it into BSI Bank Limited Singapore, a local unit of Swiss asset manager BSI.
The company, a property-to-energy group whose advisory board is chaired by Malaysian Prime Minister Datuk Seri Najib Tun Razak, is facing criticism over its huge debt and alleged financial mismanagement.
Najib this month ordered an audit of 1MDB’s accounts by the country’s Auditor-General.
1MDB has just completed a strategic review of its operations and said it planned to sell assets and development rights in prime property projects in a move to cut debt. It is also planning an initial public offering for its energy unit. – Reuters
For more: http://www.thestar.com.my/News/Nation/2015/03/24/1MDB-sing-probe/

See also iNews Cayman related story and links published March 16 2015 “Why no red flag over 1MDB after Terengganu experience, MP asks Putrajaya” at: http://www.ieyenews.com/wordpress/why-no-red-flag-over-1mdb-after-terengganu-experience-mp-asks-putrajaya/