Tabung Harapan funds to repay some of 1MDB debts

by SHAHEERA AZNAM SHAH / pic by TMR FILE PIX

The total funds collected through the Tabung Harapan Malaysia worth RM203.29 million will be used to service some of 1Malaysia Development Bhd’s (1MDB) RM51 billion debt.

Finance Minister Lim Guan Eng (picture) said the account committee has agreed for all the collected amount from the Tabung Harapan to be used in relieving some of 1MDB’s debts, totalling RM1.7 billion for 2019.

“Although the fund will not be able to pay up 1MDB’s entire debts, it will remain as the symbol of Malaysians’ patriotism to help in settling the country’s debt,” Lim said in a statement yesterday.

Lim said out of the total funds, RM575,343.31 was derived from the interest of the fixed-deposit investments managed by the Accountant General’s Department of Malaysia.

“As previously mentioned, the account committee, chaired by the secretary general of the Treasury, will decide on the utilisation according to the initial purpose of the fund, which is to settle the federal government’s debt.

“This will ensure that the decision will be done professionally,” he said.

The Tabung Harapan was established on May 30 last year to service the country’s high debt which amounted to more than RM1 trillion.

The fund, which was previously set to be closed on Dec 31, 2018, collected RM202.7 million after it had been extended to Jan 14, 2019.