Press Statement By DAP Secretary-General And MP For Bagan Lim Guan Eng In Kuala Lumpur On 15.3.2015.
1MDB will haunt our financial capital markets and even contribute to a further depreciation of the Ringgit if BN Ministers continues to be in denial that there is no bailout of 1MDB even after RM600 million of a RM950 million BN Federal Government Standby Credit has been utilised by 1MDB. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah is like an “ostrich in the sand” for insisting that the Government’s injection of RM950mil in standby credit for 1Malaysia Development Bhd (1MDB) does not in any way constitute a bailout, because 1MDB is not a failed organisation but is only facing a short-term cash flow problem.
Clearly Ahmad forgets basic high-school accounting that bankruptcy is most commonly caused by insolvency in not having enough cash to pay your debts, even when your financial accounts shows healthy accounting profits. There are many companies that have gone bust because they are unable to meet their short-term cash obligations despite having billions of dollars in assets. Continue reading ‘1MDB Will Haunt Our Financial Capital Markets And Even Contribute To A Further Depreciation Of The Ringgit If BN Ministers Continues To Be In Denial That There Is No Bailout Of 1MDB Even After RM600 Million of A RM950 Million BN Federal Government Standby Credit Has Been Utilised By 1MDB.(e/m/c)’