PUTRAJAYA: “Wait and see” - this was Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah’s reply when asked if 1Malaysia Development Bhd (1MDB) would be settling the balance of its settlement to the International Petroleum Investment Co PJSC (IPIC) due on Thursday.
Irwan was speaking to reporters after launching standard operating procedures for a co-operation between the Customs Department and the Inland Revenue Board (IRB) here on Wednesday.
1MDB has already remitted the equivalent of US$350mil to IPIC as part payment of a settlement that was due on July 31, 2017.
The balance of the payment obligation to IPIC is now due on Aug 31, 2017, 1MDB said in a statement earlier.
1MDB also said that “all funds paid to IPIC were from proceeds of the ongoing rationalisation programme.”
IPIC, in turn, acknowledged receipt of the earlier payment in a statement posted on the London Stock Exchange (LSE).
The Abu Dhabi state-owned fund said: “IPIC has now received the funds required by Aug 12, 2017 for the extension agreed with Minister of Finance (Inc) Malaysia (MoF Inc) and 1MDB to be effective.
“Accordingly, MoF Inc and 1MDB now have until Aug 31, 2017 to complete the performance of the payment obligations that were initially due to be performed by July 31, 2017 under the settlement and the consent award and to pay default interest on the delayed payment.”
In an Aug 8 statement on the LSE, IPIC said it had granted an extension subject to MoF Inc and 1MDB making part payment of not less than US$310mil due by Aug 12, 2017.
Earlier, on Aug 1, IPIC informed the exchange that it “has not received payments of US$602.725mil and US$26.025mil that was due to be paid ...”, being the first of a two-part payment due on July 31 under a debt-settlement agreement amounting to US$1.205bil that was reached in April this year.
The second payment of US$602.73mil is due at the end of this year.
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