KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) has the funds to pay the US$50.3 million (RM204 million) interest for its US$1.75 billion (RM7.12 billion) Langat bond, said Finance Minister Datuk Seri Najib Razak.
In a written reply to Datuk Mohd Ariff Sabri Abdul Aziz (DAP-Raub) in Parliament today, Najib said 1MDB has a total fund amounting to RM2.3 billion.
"However, 1MDB did not do so (pay the interest) due to a dispute with International Petroleum Investment Company (IPIC).
"For the information of the House, IPIC made the interest payment under the provision of IPIC's guarantee," said Najib, who is also Prime Minister.
Najib said 1MDB is at present reviewing the measures necessary to prove that IPIC and Aabar Investments PJS were responsible for the funds paid by 1MDB to Aabar BVI totaling USD3.5 billion (RM14.24 billion).
Ariff Sabri asked had Najib as the Finance Minister to state the actual amount of debt owed to IPIC and the reason 1MDB was unable to pay the interest of UD$50 million on the loan it took.