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Malaysia's 1MDB secures RM950m standby credit from government
[KUALA LUMPUR] Malaysia's debt-laden state fund, 1Malaysia Development Bhd (1MDB), said on Thursday it had secured a RM950 million (S$355 million) loan on commercial terms from the ministry of finance.
The company, a property-to-energy group whose advisory board is chaired by Prime Minister Najib Razak, is facing criticism over its debt of nearly RM42 billion and alleged financial mismanagement.
Mr Najib last week instructed the Auditor General to independently verify the accounts of 1MDB after what the fund said was "politically motivated" criticism of it.
"We are confident that with this facility from the shareholder, the company is well positioned to effect its previously announced plans," Arul Kanda, 1MDB President and Group Executive Director, said in a statement.