PUTRAJAYA: Government-linked companies and government agencies came under various pressures to facilitate repayment of debts by 1Malaysia Development Bhd (1MDB), revealed Lim Guan Eng.
The newly minted Finance Minister said that the people in these bodies were compelled to allow the payments.
“There were all sorts of pressures, otherwise they would not have made the payments. There was written authorisation (to facilitate the payments).
“We are not talking about hundreds of millions of ringgit. We are talking about billions of ringgit.
“Malaysian treasury officials know that without written authorisation (for the payments), their heads would be on the chopping block,” Lim said during a press conference at the Ministry of Finance (MOF) here this afternoon.
Lim confirmed a report by the Wall Street Journal (WSJ) and Reuters that Bank Negara Malaysia (BNM) and Khazanah Nasional Bhd money was used to pay 1MDB’s debts to International Petroleum Investment Co (IPIC)
“As highlighted via the press release issued by MOF on May 22, 2018, MOF has made payments on behalf of 1MDB amounting to RM6.975 billion due to 1MDB’s inability to pay.
“This amount includes the payment made to IPIC as part of the RM5.05 billion settlement agreement,” he said.
Lim said that among the sources for payments to IPIC and on behalf of 1MDB included redemption of Redeemable Cumulative Convertible Preference Shares (RCCPS) by Khazanah Nasional Bhd amounting to RM1.199 billion.
He said the other source was the sale of property Lot 41 at Seksyen 51, Bandaraya Kuala Lumpur, to BNM amounting to RM2.06 billion.
Lim was referring to an incident on Dec 14 last year, where MOF through its indirectly owned company Hartanah Mampan Sdn Bhd, entered into a sale and purchase agreement with BNM to sell a piece of land strategically located adjacent to Sasana Kijang. — Reports by Hidir Reduan, Irwan Shafrizan Ismail, Mahanum Abdul Aziz and Ooi Tee Ching