MoF has been bailing out 1MDB since April 2017 — Guan Eng
PUTRAJAYA: The Ministry of Finance (MoF) has been bailing out 1Malaysia Development Bhd (1MDB)’s debt service obligation since April, 2017, said Finance Minister Lim Guan Eng yesterday.
He said the list of payments by MoF, on behalf of 1MDB, amounted to RM6.98 bilion, inlcuding payments made to International Petroleum Investment Company (IPIC) as part of the settlement agreement amounting to RM5.05 billion.
“The above confirms public suspicion that 1MDB had essentially deceived Malaysians by claiming that they have been paid via a ‘successful rationalisation exercise’.
“All these while it has been the MoF which bailed out 1MDB,” Lim revealed at his maiden press conference after taking over office as Malaysia’s new Finance minister.
He also disclosed that the list of payments, to date, only involved interest, coupon payments and the advance from IPIC.
“They have yet to take into account the billions of ringgit of debt which will be due from the year 2022.
“I have also been informed that besides the RM143.75 million, due end of this month, another RM810.21 million worth of interest is due between the months of September and November this year,” he said.
The finance minister, who earlier held a series of meetings with all senior Treasury officials and with AuditorGeneral Tan Sri Madinah Mohamad, has instructed that an in-depth study be carried out on 1MDB’s debt and liabilities and propose measures to resolve the crisis arising from the scandal.
“We will submit our findings to the 1MDB task force formed by Prime Minister Tun Dr Mahathir Mohamad,” he added.
The finance minister said among the most urgent items that needed to be resolved was the payment of interest on 1MDB’s borrowings.
“This is because the amount of RM143.75 million is due to be paid by 1MDB on May 30, 2018,” he said.
Meanwhile, Lim announced that Arul Kanda, who would remain the President and Chief Executive Officer of 1MDB until June 30, 2018, has insisted that 1MDB is fully able to service its debt obligations.
“Therefore, I have given instructions to Arul to brief and clarify if 1MDB is able to pay the above sum which is due next week,” he said.
Lim has also requested to meet 1MDB directors, Datuk Kamal Mohd Ali and Datuk Norazman Ayob, to brief the Finance Ministry on the state of affairs in 1MDB. - Bernama