Putrajaya to empty Tabung Harapan and pay off some 1MDB debts

The government will use all funds collected from Tabung Harapan Malaysia to pay off a portion of 1MDB's RM1.7 billion debt due this year.

Finance Minister Lim Guan Eng said when the fund closed on Jan 14, it had collected RM202.71 million.

This was then put into fixed deposits managed by the National Accounting Department, generating RM575,342 in interest – bringing the total up to RM203.29 million.

Subsequently, the Tabung Harapan trust account committee decided on April 24 that the entire fund would be used to service a portion of 1MDB's 2019 debts.

The committee was chaired by Treasury chief secretary Ahmad Badri Mohd Zahir.

"Even though Tabung Harapan can't pay off all of 1MDB's RM51 billion debt, it will remain as a symbol of Malaysian's loyalty and patriotism to solve the country's debts," he said in a statement today.

Lim once again thanked all who contributed to the fund.

Tabung Harapan was set up by Pakatan Harapan in May last year to allow the public to contribute to efforts to reduce the federal government's debts.