KUALA LUMPUR – 1Malaysia Development Bhd (1MDB) will settle payments on its own to International Petroleum Investment Co (IPIC) under a debt-settlement agreement amounting to US$1.205bil (RM5.16bil), said the Prime Minister.
“As previously announced, 1MDB is owned by the company,” Datuk Seri Najib Tun Razak told Tan Sri Muhyiddin Yassin (Pribumi-Pagoh) in a written reply in Parliament.
Muhyiddin had asked the Finance Ministry to reveal the source of money to settle the debt with IPIC and if the Government would use public money for it.
Last week, Najib, also the Finance Minister, told the Dewan Rakyat that the delayed payment to IPIC was due to a technical matter.
The second payment of US$602.73mil (RM2.58bil) is due at the end of this year.
1MDB had issued a three-paragraph statement saying it had written to IPIC to inform them that the obligations would be made in August.
It said the delay was due to payments, which would be made from proceeds of the 1MDB rationalisation plan originally due last month, that had been pushed back due to additional regulatory approvals