Finance Minister: 1MDB lied! Received almost RM7b in bailouts

Finance Minister Lim Guan Eng today revealed that 1MDB received close to RM7 billion in bailouts from the previous BN government.

Lim said this was contrary to 1MDB's claim that it was capable of paying off its own debt from its rationalisation exercise.

"Based on the list, the payments by the Finance Ministry on behalf of 1MDB has amounted to RM6.98 billion.

"The sum included payments made to the International Petroleum Investment Company (IPIC) as part of the settlement agreement, amounting to RM5.05 billion.

"The above confirms the public suspicion that 1MDB had essentially deceived Malaysians by claiming that they have been paid via a 'successful rationalisation exercise'.

"All this while, it has been the Finance Ministry who bailed out 1MDB," he told a press conference in Putrajaya today.

Lim's revelation comes on his first day of work as finance minister under the new Pakatan Harapan government. 

He said he was earlier informed by deputy treasurer-general Siti Zauyah Mohd Desa that among the most urgent items to be resolved in his first days of office is the payment of interest for 1MDB loans.

The next payment by 1MDB which amounted to RM143.75 million will be due on May 30, he added.

Beside the RM143.75 million, Lim said there would be another RM810.21 million worth of interest due between the months of September and November.

During the meeting, he said he was also informed that 1MDB CEO and president Arul Kanda Kandasamy would remain in his position until June 30.

"Arul Kanda has to date insisted that 1MDB is fully able to service its debt obligations.

"Therefore I have given instructions for Arul Kanda to brief and clarify if 1MDB is able to pay the above sum due next week," he said.

Aside from Arul Kanda, Lim said he had also requested to meet the directors of 1MDB, Kamal Mohd Ali and Norazman Ayob, to brief the ministry on the state of affairs in 1MDB.

The new Harapan government under Prime Minister Dr Mahathir Mohamad had announced the setting-up of a special taskforce to investigate the 1MDB scandal as well as to prosecute wrongdoers and retrieve related assets. 

Lim added that he has instructed his officers to study in detail the debts and liabilities of 1MDB and submit its findings to the taskforce. -Mkini