‘Technical issues’, not lack of money why 1MDB missed IPIC payment, says Najib

Malaysia’s Prime Minister Najib Razak Wednesday (Aug 2) blamed 1Malaysia Development Bhd (1MDB)’s failure to pay Abu Dhabi’s sovereign wealth fund the US$600 million (S$816 million) it was due Tuesday on “technical” issues, saying it was not because 1MDB had no money.

“Regarding 1MDB (and its failure to repay International Petroleum Investment Company, or IPIC), we have released a statement that it was due merely to a technical issue, and not because we are not able to pay back.

“So we trust that it will not affect the confidence in the country’s economy,” said Mr Najib in reply to opposition leader Dr Wan Azizah Wan Ismail’s supplementary question in Parliament Wednesday.

Dr Wan Azizah had posed a question to Mr Najib on whether 1MDB’s failure to make the payment to IPIC would have an adverse effect on investor sentiments.

Mubadala, which now owns IPIC, issued a statement Wednesday giving 1MDB five days make the US$600 million payment it missed yesterday, failing which 1MDB will “become subject to additional obligations”.

1MDB agreed in April after private arbitration to pay IPIC US$1.2 billion in two instalments by the end of the year. THE MALAYSIAN INSIGHT