DAP lawmaker Tony Pua said Second Finance Minister Johari Abdul Ghani has made an "illogical and embarrassing" statement by saying the Ministry of Finance Inc (MoF Inc) would not take over the debt of its wholly owned subsidiary, 1MDB.

He was responding to Johari's comment that the debts incurred in 1MDB's wholly-owned subsidiaries TRX City Sdn Bhd (TRXC) and Bandar Malaysia Sdn Bhd (BMSB), as operating debt.

"No finance minister worth his salt would argue that the 'operating debts' of a wholly-owned subsidiary does not belong to the parent company’s accounting books," Pua said in a statement today.

"Johari tried to wriggle his way out of it by claiming that these were merely the 'operating debts' of the real estate subsidiaries.

"Malaysians fail to understand his convoluted argument that 'there is therefore a clear distinction between 1MDB debts, which will not be taken over by MOF Inc, and the BMSB/TRXC project company operating debt, which are part of the assets and liabilities of the company'," he said.

Pua said he hoped Johari did not make the statement himself, as for a former corporate man, his statement does not make any financial sense.

The second finance minister might do well to consult 1MDB’s newly appointed auditors, Parker Randall for an accounting opinion before issuing such embarrassing statements, urged Pua...