Dr M: Too much evidence of cover-ups of 1MDB

The authorities dare not investigate the 1MDB issue now, but the law will eventually catch up once Prime Minister Najib Abdul Razak loses power, said Dr Mahathir Mohamad.

"There is too much evidence of cover-ups by politicians and civil servants.

"When Najib is defeated and I believe he will be, in the next election, there will be no stopping the legal actions which must follow," added the former premier in a blog posting this afternoon.

Last Sunday, Mahathir had accused Najib of a "cover up" and criminal wrongdoing after initially claiming that 1MDB's funds parked in Singapore was in cash but later saying it was in the form of assets.

This became even more baffling when Finance Minister II Ahmad Husni Hanadzlah clarified the assets were in the form of "units" but refused to explain what he meant by that.

Mahathir said he hoped the restructuring plan unveiled by Ahmad Husni to rescue 1MDB will work but he said this does not absolve Najib's administration of money that is still "missing".

"I hope the restructuring will help but unless the lost money is returned, paying off debts will absolve no one," he said.

Yesterday, 1MDB detailed where it had spent RM41.8 billion of its loans including RM6.1 billion in the company's Singapore subsidiary Brazen Sky.

However, the investment is controversial as it is in the form of "units" and its exact value cannot be determined.

Mahathir said until the value of the "units" can be proven, the money is assumed to have been lost.

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Dr M: Abu Dhabi-based firm ‘effectively’ new 1MDB asset owner if Putrajaya accepts offer

KUALA LUMPUR, June 4 ― Former prime minister Tun Dr Mahathir Mohamad warned today the government was “effectively” selling off the country’s assets gained through 1Malaysia Development Berhad (1MDB) if it accepted an opaque US$1 billion (RM3.7 billion) offer by a foreign investment firm in a bid to settle the sovereign company’s debilitating debts.

In his latest blog post, Dr Mahathir said 1MDB would gain nothing, reasoning that the money offered by Abu Dhabi-based International Petroleum Investment Holding Co (IPIC) would be used to pay up the outstanding payments owed by the state investment fund to shrink its growing debt pile.

“If IPIC pays 4 billion USD to 1MDB, effectively IPIC become owner of the assets of 1MDB.

“1MDB actually gets nothing as the money from IPIC will go towards paying the interest and loans of 1MDB to reduce the total loans of RM42 billion to a smaller amount,” he said - Malaymail Online