KUALA LUMPUR (April 28): Malaysia has a reason to relook into 1Malaysia Development Bhd's (1MDB) financials after 1MDB's London arbitration settlement, as the company will be responsible for all future interest and principal payments for its two bonds, valued at a collective US$3.5 billion (about RM15.22 billion).

Petaling Jaya Utara MP Tony Pua said in a statement today that Malaysian Government-owned 1MDB's financials involved taxpayers' money.

On Monday (April 24), 1MDB and International Petroleum Investment Co (IPIC) said in separate statements that both companies had agreed on a settlement involving the US$3.5 billion worth of 1MDB bonds, which mature in 2022. The agreement also involves Aabar Investments PJS and Minister of Finance (Inc) Malaysia (MoF Inc).

Today, Pua said it was the "perfect opportunity for the Auditor-General and Public Accounts Committee" to relook into 1MDB by reviewing the 1MDB-IPIC settlement.

According to IPIC's statement to the London Stock Exchange, "1MDB and MoF Inc., undertake to IPIC to assume responsibility for all future interest and principal payments under the two bonds issued by 1MDB Group companies that are guaranteed by 1MDB and IPIC; (i) US$1,750,000,000 fixed rate 5.75 per cent. notes due 2022 issued by 1MDB Energy (Langat) Limited and (ii) US$1,750,000,000 fixed rate 5.99 per cent. notes due 2022 issued by 1MDB Energy Limited."

1MDB said in its statement that it "will, amongst others, make certain payments to IPIC and will assume responsibility for all future interest and principal payments for two bonds issued by 1MDB Group of companies, due in 2022."

According to 1MDB, it will meet these obligations primarily via monetisation of 1MDB-owned investment fund units.