BANGI — 1Malaysia Development Bhd (1MDB) has been given an extension to resolve the payment issue with International Petroleum Investment Co (IPIC), said Finance Ministry Secretary-General, Tan Sri Mohd Irwan Serigar Abdullah.
“We are asking for an extension which they have agreed and when the time comes, we will pay off,” said Mohd Irwan Serigar, who is also 1MDB chairman.
He said 1MDB would sign another agreement for the extension of payment to IPIC.
“We are talking to IPIC to try arrange time to pay off. We will pay off to IPIC,” he said.
Irwan said this to reporters after launching the Home Price Checking System for Civil Servants here today.
On why it took time to pay off to IPIC, Irwan said: “It’s the selling of the units and there are some regulatory requirements and so on.
“We need to comply with all these. It will take time which we didn’t foresee. So all this thing will be settled,” he said.
1MDB has previously written to IPIC to inform the Abu Dhabi-based company that the payment, originally due on July 31, 2017, will be paid in August 2017 instead as it awaits the necessary fund.
It was reported that the payment, amounting to US$603 million (about RM2.58 billion) from 1MDB to IPIC, is part of a settlement over a debt dispute.
COMPANY MATTER? BUT 1MDB BELONGS TO MOF WHICH IS GOVT OF MALAYSIA
MEANWHILE, according to Malaysiakini:
PARTIAL PAYMENT BY AUG 12
Abu Dhabi’s International Petroleum Investment Company (IPIC) has given 1MDB until Aug 31 to make a US$603 million debt settlement payment that was due today, plus interest.
However, IPIC said 1MDB was obliged to pay at least US$310 million by Aug 12, according to the company’s regulatory statement to the London Stock Exchange today.
The payment was originally due on July 31 as part of a settlement for arbitration proceedings between the Abu Dhabi-state owned fund, 1MDB, and the Ministry of Finance Incorporated (MOF Inc).
But 1MDB failed to honour its commitment, forcing Abu Dhabi’s sovereign wealth fund to give 1MDB a grace period of five days to make the payment. That deadline was to expire at noon (Malaysian time) today.
The IPIC statement today states that 1MDB and MOF Inc are to pay an undisclosed amount as “default interest” of the delay.
Earlier today, Treasury secretary-general Irwan Serigar, was quoted by state news agency Bernamasaying that 1MDB was in talks to get the deadline extended.
Meanwhile, Finance Minister II Johari Abdul Ghani said he could not confirm the Aug 31 deadline as he was “not privy to this information”.
“Because this issue is being discussed and dealt with the board of 1MDB and IPIC.
“As I told you last time, this is a company matter so I get them to go and resolve these issues at the company level,” Johari told reporters at the finance ministry in Putrajaya today.
When asked whether he was concerned about 1MDB’s failure to pay the debt, Johari again stressed that this was a “company matter” and pointed out that there are various other companies who are affected in business dealings.
Meanwhile, asked to address rumours that the debt will be settled using public funds, Johari reiterated that no public funds have been channelled from the finance ministry to 1MDB for this purpose.
“Unless, I don’t know, in the future if they have a problem, (they will) come and ask us to help them then at that time we will resolve that.
“But at this moment, no. They have not come back to us and ask for any help,” he added.
MALAY MAIL / MKINI