Najib explains 1MDB's decision not to pay IPIC

Prime Minister Najib Abdul Razak defended his brainchild 1MDB, claiming it has enough cash to pay US$50.3 million interest for the US$1.75 billion Langat bond.

He said 1MDB did not pay the interest as it was in dispute with the Abu Dhabi sovereign wealth fund International Petroleum Investment Company (IPIC).

"1MDB has a total fund of RM2.3 billion and able to repay the US$50.3 million interest.

"However, 1MDB did not do so because of (its) dispute with IPIC," he said in a parliamentary written reply under his capacity as the Finance Minister.

"For the information of the House, IPIC had made the interest payment under the provision of IPIC's guarantee," he noted.

Najib was responding to questions raised by Mohd Ariff Sabri Abdul Aziz (DAP-Raub), who asked about the total debts involving IPIC.

"What was the reason that 1MDB unable to repay US$50 million debt interest?" asked Ariff.

[More to follow]

-Mkini