Friday 29 Mar 2024
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KUALA LUMPUR (April 19): Prime Minister Datuk Seri Najib Tun Razak must explain how 1Malaysia Development Bhd (1MDB) will finance the US$1.1 billion (about RM4.3 billion) repayment demanded by International Petroleum Investment Co (IPIC), Petaling Jaya Utara MP Tony Pua said.

IPIC was the guarantor for 1MDB bonds. The Government via Minister of Finance Inc (MOF Inc) owns 100% of 1MDB.

Pua said in a statement today : "He (Najib) must explain how is 1MDB going to fund the immediate repayment of US$1.1 billion demanded by IPIC."

Najib, who is also finance minister, is the chairman of 1MDB's advisors board.

Yesterday, IPIC alleged that 1MDB and MOF Inc had failed to pay the US$1.1 billion to IPIC. IPIC had said this in a statement to the London Stock Exchange.
 
"IPIC has performed all of its obligations to date under the Binding Term Sheet. 1MDB and MOF have failed to perform certain payment and other obligations owed by them to the IPIC group pursuant to the terms of the Binding Term Sheet, including the obligation to pay to IPIC U.S.$1,102,725,000 plus interest accruing under the terms of the Binding Term Sheet," IPIC said.

1MDB responded in a statement that it had "ample liquidity" to fulfill its financial obligations under its agreement with IPIC.

News reports quoted the Government as saying in a statement that it "will continue to honour" its financial commitments.

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