KUALA LUMPUR (Oct 29): The government will have to forked out RM13.9 billion to settle 1Malaysia Development Bhd and SRC International Sdn Bhd's debts by the end of 2020, according to Finance Minister Lim Guan Eng

That comprises RM2.4 billion allocated to pay their debt obligations this year and RM2.7 billion for 2020, and the RM8.8 billion paid previously in 2017 (RM6.7 billion) and 2018 (RM2.1 billion), he said in a statement today.

The RM8.8 billion repayment was concealed by the previous government and only revealed after the change in federal government on May 9, 2018, he said.

“Imagine how great the impact of that total RM13.9 billion, which has to be spent from 2017 to 2020 to pay the losses from the 1MDB and SRC scandal, if the funds could be used for the people's welfare,” said Guan Eng in a statement today.

“Clearly, the government's repayment to finance the losses incurred by 1MDB and SRC's scandals is part of the financial mismanagement scheme and the "kleptocracy" of the previous government,” he said.

Despite this, he reiterated that the government will remain committed in fulfilling the mandate to spur development and look after the welfare of the people.

Other than using public funds, he said the payments will depend on 1MDB asset recovery, where some RM1.45 billion has been recovered so far, in addition to the RM203 million donated by the public to Tabung Harapan Malaysia.