‘1MDB has not asked govt’s help’

New Straits Times - - News -

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.

PIC BY AH­MAD IRHAM MOHD NOOR

Sec­ond Fi­nance Min­is­ter Datuk Seri Jo­hari Ab­dul Ghani speak­ing at the Bud­get Fo­cus Group meet­ing in Putrajaya yes­ter­day.

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