Costly power sector entry

Costly power sector entry



1MDB incurred a cost of RM18.79bil between 2012 and 2014 for its foray into the power-generation sector.

However, the asset was sold to CGN Power Corp for RM9.83bil in a rationalisation exercise undertaken by current chief executive officer, Arul Kanda Kandasamy (pic).

The report stated that the sale was only for the assets and the debt of RM18.39bil was left with 1MDB.

The board was not informed of the purchase of the power plant from the Genting Group and the full terms of agreement that the management went into with regard to the issuance of two US-dollar bonds amounting to US$3.5bil.

The report also cited how the board was not aware of payments made to Aabar Investments PJS Ltd, a company based in British Virgin Islands, amounting to US$1.968bil to terminate an option in relation to the issuance of the US-dollar bonds.

The Auditor-General’s report also cast aspersions on the status of Aabar Ltd, as to whether it was really a company under International Petroleum Investment Company.

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