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He asked why Malaysia needs a state investment fund like 1MDB, when it is heavily in debt, pointing out that such a company is usually formed by countries with large government surpluses.
“The money for 1MDB is not from the country’s surpluses. It is borrowed. The billions of ringgit borrowed add massively to the nation’s debts. Debts taken by the country must be repaid. If not we will become insolvent like Argentina. A country that suffers deficits annually will not be able to repay debts of this size,” he wrote in his blog on Sept 10. (Read more here).
It said that its debt totalled RM37 billion for the financial year ended March 31, 2013.
In a textbook response to public concern it said: “As a limited liability company, 1MDB poses limited liability risks to the government as its shareholder.
“The government guarantees RM5.8 billion of the group’s total loan on which 1MDB has significant interest cover. 1MDB has never missed any payment schedule.”
The Sarawakian was named one the 50 most influential policymakers in the world by Bloomberg Markets. The US-based magazine credited the 56-year-old Sarawak senator with “making it easier to invest and do business in Malaysia as he shapes economic policy meant to help the country catch up to its more-developed neighbours.”
Still Dr Mahathir stops short of doing the ultimate – calling for Mohd Najib’s resignation. That was what he did with (Tun) Abdullah Ahmad Badawi in the aftermath of the 2008 General Elections.
Within months Abdullah was put out to the pasture and in came Dr Mahathir's ultimate choice – Mohd Najib Abdul Razak. Ahhhh… the wheel of time keeps on turning.