‘1MDB has not asked govt’s help’
PUTRAJAYA: The government has not received any call for assistance from 1Malaysia Development Bhd (1MDB) over its default payment to International Petroleum Investment Co (IPIC).
Second Finance Minister Datuk Seri Johari Abdul Ghani said 1MDB had not asked the Finance Ministry or the government for help on the issue thus far.
“You don’t assist them when they don’t come to you. And since this is a company matter, let the companies deal with it on their own. 1MDB and IPIC are both companies, so let them deal between them (on the extension of time to pay).
“So far, they (1MDB) have not come to MoF, so we are not getting involved at this moment. As far as I am concerned, they are dealing with this at the board level so let them do that.
“The government’s commitment is to ensure the country’s economy is progressing. This is a company matter, let them resolve it among themselves,” said Johari after the Budget Focus Group meeting yesterday.
Johari was swamped with questions from reporters over the issue after 1MDB announced yesterday that it had written to IPIC to inform it that the obligations due on July 31, would be made this month.
1MDB said all payments due from the company to IPIC would be made from the proceeds of its rationalisation plan and it was awaiting funds that were due to be received last month.
“We have written to International Petroleum Investment Co (IPIC) to inform them that the obligations, due on July 31, would be made in August.
“As these are the funds which will be used to pay IPIC, 1MDB has written to IPIC to inform them of our commitment to meet the obligations, originally due on July 31, in August.
“Due to the need for additional regulatory approvals, the receipt of those funds has been delayed to August,” the investment body said.
IPIC had given 1MDB five working days to pay up a total US$628.75 million (RM2.69 billion) it owed the company, after the latter missed the payment deadline on July 31.
“IPIC has not received the payments of US$602.725 million and US$26.024 million that were due to be paid under the consent award and the settlement by Ministry of Finance (Inc) Malaysia (MoF Inc) and 1MDB by July 31, 2017,” the Abu Dhabi-based company told the London Stock Exchange in a statement.
It said that under the settlement agreement, there was a cure period of five business days for both MoF Inc and 1MDB to remedy the non-repayment, before the two parties become subject to additional obligations to IPIC and Aabar Investments PJS.
It was reported that the US$602.72 million is the first tranche of two due to IPIC. In total, 1MDB has to pay IPIC US$1.2 billion as part of the settlement agreement.
The remaining portion of US$602.72 million is due by year end.