Govt stuck with US$3bil debt over 1MDB loan, court told


KUALA LUMPUR: The government has to bear the repayment of a US$3bil (RM13.26bil currently) loan undertaken by 1Malaysia Development Bhd (1MDB), the High Court here heard.

Prosecution witness Datuk Siti Zauyah Md Desa, a former deputy secretary-general at the Finance Ministry, testified that 1MDB had failed to repay its debt according to agreed terms, so the government had to foot the repayment as the letter of support (LOS) for the loan was signed by Datuk Seri Najib Razak, the finance minister at that time in 2013.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Nation

Azmin, Radzi dropped in Perikatan leadership reshuffle
Asset rules for civil servants get a strict makeover
World Cup host nations hold joint viewing party
Surveillance systems a vital ‘third eye’ in the fight against modern crime
Dumpling prices steady
Lawyers: Safeguards needed for CCTV data
RTM apologises for glitch during France vs Senegal match
Portuguese-Eurasian community comes home to support their favourite team
Anti-graft groups: Public trust hinges on transparency
Single mum works two jobs for son’s surgery

Others Also Read