Guan Eng: BN govt paid RM7bil to bail 1MDB out

PUTRAJAYA: The Ministry of Finance has paid some RM6.98bil to bail out 1MDB by helping it service its debts, said Finance Minister Lim Guan Eng (pic).

"We are extremely concerned as I was informed by Ministry officers that the Ministry of Finance has been bailing out 1MDB debt service obligations since April 2017," said Lim

Lim added that the revelation confirms public suspicions that 1MDB had deceived Malaysians by claiming that it had successfully serviced its loans via the company's so-called rationalisation exercise.

"The payments amounted to RM6.98bil," he told reporters at a press conference here today (May 22).

Lim, who clocked in as Finance Minister on Tuesday (May 22), said he has to urgently deal with 1MDB's next loan interest payment, which is due at the end of this month.

"I was informed that among the urgent matters that I need to resolve in my first days as Finance Minister is the payment of interest for 1MDB borrowings. This is because the amount of RM143.75mil is due to be paid by 1MDB by this May 30," he said.

Lim said that an additional RM810.2mil worth of interest is due to be paid by 1MDB between September and November this year.

Lim noted that 1MDB president and chief executive officer Arul Kanda had insisted on Tuesday that the company is fully able to service its debt obligations.

"I have instructed Arul Kanda to brief the ministry if 1MDB is able to repay the due sum by next week," he said

Lim added that 1MDB directors Datuk Norazman Ayob and Datuk Kamal Mohd Ali would also be called in to provide a briefing on 1MDB's state of affairs.