KUALA LUMPUR: The government allocated grants totalling RM39.737 billion to 1Malaysia Development Bhd (1MDB) between 2019 and 2023, according to the 2024 Auditor General's Report Series 3 (LKAN 3/2024).
The report, published today, showed that these grants were aimed at principal repayments and other expenses, including bond interest and coupon payments.
In addition to the repayment, the government must also provide an allocation of RM9.456 billion, it added.
"This includes RM5 billion for the principal of Sukuk Islamic Medium-Term Notes (IMTN), maturing on May 27, 2039, and RM4.456 billion for IMTN coupon payments from 2024 to 2039 (15 years and six months)."
It said the government must make annual IMTN coupon payments of RM287.5 million.
Meanwhile, the report also suggested the government recover assets linked to 1MDB and SRC International Sdn Bhd (SRC) from domestic and international parties.
It added that the funds were crucial to cover 1MDB and SRC debt repayment expenses as well as other debt expenses, given that the Asset Recovery Trust Account (AAMKA) will be closed by 2028, as stipulated in AAMKA Trust Directive.
At the same time, the report added that the government had started reporting guaranteed commitments for 1MDB loans amounting to RM32.208 billion (2017: RM31.651 billion) in the federal government's 2018 financial statements.
"The reporting in these financial statements arises from the letter of support and settlement agreement regarding 1MDB's loans by the government.
"The balance of the guaranteed commitment for 1MDB over the five-year period from 2019 to 2023 has shown a decline following the grants provided by the federal government for the repayment of 1MDB's loans."
The LKAN 3/2024 Series 3 focuses on two issues:
THE performance report on the implementation of development projects under the 3rd Rolling Plan of the 12th Malaysia Plan (12MP) up to Dec 31 last year; and,
THE key audit area, which concerns material and significant matters that impact the financial performance of the federal government in 2023.
The public can view it at https://www.audit.gov.my