Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah spoke of the banking sector's confidence in the debt-ridden state fund 1Malaysia Development Bhd (1MDB) but contradicted himself towards the end of a live television dialogue tonight.
He said that if it was true that RM27 billion was indeed missing from the state fund, the lenders would be the first to raise the alarm bells, but added that in this case, the banking sector had not done so.
"If the financial sector is not saying anything about it until now, that simply means that the issue of the missing money does not arise at all," the minister said on state TV.
But towards the end of the interview, Husni spoke of the possible repercussions if the government had to take over 1MDB's debts, adding that this would cause the currency to drop in value, the country's deficit to hit above 4% and its credit rating to come down.
Husni also insinuated that Prasarana Malaysia Bhd (Prasarana) winning the contract to operate and maintain the Arafah-Mina Metro system during the Hajj season was due to 1MDB.
Prasarana was recently awarded a three-year contract worth US$215.19 million (RM765 million) by the Saudi Arabian Ministry of Municipal and Rural Affairs to operate and maintain the existing Al Mashaaer Al Mugaddasah-Makkah metro route during the Hajj season.
themalaysianinsider