KUALA LUMPUR (Mar 3): Umno vice president Datuk Seri Shafie Apdal today refused to respond to reports that the Cabinet had rejected 1Malaysia Development Berhad's (1MDB) request for a RM3 billion cash injection.
Shafie, who is the Rural and Regional Development Minister, said he did not have to answer when reporters asked him to comment on the issue.
"Where did you hear about that? I don't have to respond," he told reporters today after officiating the 49th MARA Day celebrations here.
The Malaysian Insider reported on Friday that the Cabinet had rejected a proposed RM3 billion cash injection into 1MDB during its meeting that week.
Sources said that 1MDB can no longer go to the market to borrow – whether through bank loans or bond issues – due to its RM42 billion debt, massive negative cash flow, and struggle to pay the RM2 billion debt.
Shafie also downplayed an upcoming meeting of Umno division leaders to show solidarity for party president Datuk Seri Najib Razak, who is facing criticism from various quarters over 1MDB, including from within his own party.
The government-owned strategic investment fund has been under the spotlight following reports of its debts and financial irregularities in its accounts.
Last weekend, whistleblower website Sarawak Report claimed to have obtained documents revealing that Malaysian businessman Low Taek Jho, or Jho Low, had orchestrated the 2009 joint venture between 1MDB and PetroSaudi International (PetroSaudi).
It claimed Low did this so that PetroSaudi could act as a "front" for him to siphon US$700 million (RM2.5 billion) from the deal.
Critics of the Finance Ministry-owned company have demanded that Najib respond to the allegations surrounding 1MDB, given his position as the finance minister and chairman of the 1MDB advisory board.
Amidst these attacks, Umno division heads are holding a solitary meeting with their president this Sunday.
The Star Online reported Cheras Umno division chief Datuk Seri Syed Ali Alhabshee as saying that they want to "show local opposition and foreign meddlers" that they are firmly behind Najib.
However, Shafie insisted today that Sunday's meeting would be an ordinary one, and nothing out of the norm would be discussed.
He said the March 8 meeting would allow them to explain current issues to grassroot leaders.
"Why not? Division leaders also need to understand (the situation), so that there is less confusion, (there will be an) explanation regarding the issues raised internally and externally," said Shafie.
"If it can be explained, it can fix the perception of not just the leaders but the society at large," he said.
Najib's administration has also come under attack for the country's economic woes and the goods and services tax (GST) which takes effect next month.
His critics include leaders within Umno, most notable former president Tun Dr Mahathir Mohamad.
The recent jailing of opposition leader Datuk Seri Anwar Ibrahim for sodomy and the alleged use of the Sedition Act to silence critics have also sullied the reputation of Najib's administration locally and abroad.
Veteran DAP politician Lim Kit Siang had also questioned the need for Umno division leaders to deliberately stage a show of support for Najib, saying that the move indicated turmoil within the lead Malay party in the ruling coalition.