{"id":13684,"date":"2015-02-02T11:23:15","date_gmt":"2015-02-02T03:23:15","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=13684"},"modified":"2025-04-11T16:55:57","modified_gmt":"2025-04-11T08:55:57","slug":"1mdb-what-is-the-fuss-all-about","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/1mdb-what-is-the-fuss-all-about","title":{"rendered":"1MDB: What Is The Fuss All About?"},"content":{"rendered":"

\"1MDB\"<\/a><\/p>\n

The recent and sudden resignation of the CEO of 1Malaysia Development Berhad (1MDB)<\/a>, Mohd Hazem Abdul Rahman has set many tongues wagging, and keyboard warriors typing. So, what exactly is 1MDB, what does it do, and what is its function?<\/p>\n

A brainchild of Prime Minister Datuk Seri Najib Tun Razak, 1MDB is Malaysia\u2019s second sovereign wealth fund after Khazanah Nasional Bhd.<\/p>\n

The organisation is set up to drive economic development in Malaysia by promoting global partnerships, drawing foreign direct investment and participating in sectors that help drive socio-economic growth. Although 1MDB is a Government-owned company, it has an independent management team that combines Government\u2019s support with private sector expertise and capital to unlock potential value.<\/p>\n

It has drawn its fair share of criticism since its inception. Some of the questions brought up by the rakyat and politicians are the heavy debts the organisation has accumulated, its use of money and its opaque operations.<\/p>\n

Three CEOs, three auditors and two chairmans in five years, the company is still mired in debts amounting to RM42 billion. Most are questioning the motive behind the sudden change of CEO and the need for a \u201cstrategic review\u201d in the midst of completing a massive US$3 billion initial public offering for its energy division.<\/p>\n

Within these five years, the organisation has also replaced its external auditors for the third time after the company was late in submitting its accounts in 2013. The company started out with Ernst and Young, then KPMG, and most recently Deloitte.<\/p>\n

<\/span>The fuss: detailed<\/strong><\/span><\/h2>\n

While a lot of people are upset with 1MDB many of us don\u2019t really understand what the deal is with 1MDB when it comes to the debt they\u2019ve built up and how they got there.<\/p>\n

The main talking point when it comes to 1MDB is the enormous debt the company has managed to rake up in mere five years. It is not a small sum, RM42 billion.<\/p>\n

Signs that point to 1MBD being financially stretched include:<\/p>\n