1MALAYSIA Development Bhd’s Arul Kanda Kandasamy will have to explain whether the debt-laden state fund can pay RM143.75 million for interest payment by May 30, Finance Minister Lim Guan Eng said today.

He also said 1MDB has to pay another RM810 million in interest between September and November this year.

“We are extremely concerned with regard to the above because I have been informed by Ministry of Finance (MoF) officials that MoF has been bailing out 1MDB’s debt service obligations since April 2017,” he said during a press conference in Putrajaya.

He said the payments on behalf of the state fund amounted to RM6.98 billion.

Lim said the sum included payments made to Abu Dhabi fund IPIC as part of a settlement agreement amounting to RM5.05 billion.

“The above confirms the public’s suspicion that 1MDB had essentially deceived Malaysians by claiming that they have been paid via a ‘successful rationalisation exercise’.

“All this while, it has been MoF which has bailed out 1MDB.”

He said Arul Kanda, who will remain as president and chief executive officer of 1MDB till June 30, has to date insisted that 1MDB is fully able to service its debt obligations.

“I have instructed Arul Kanda to brief the ministry if 1MDB is able to repay the due sum by next week.”

He added that 1MDB directors Norazman Ayob and Kamal Mohd Ali will be called in to provide a briefing on 1MDB’s state of affairs. – May 22, 2018.