1MALAYSIA Development Bhd must submit an official letter to the Finance Ministry if it wants its debts paid off, said Lim Guan Eng.

“I have to pay RM143 million by the end of this month. I was shocked (to find out) that the first document I’m going to sign is to pay off (1MDB) debts,” he said at the ministry today.

“I refuse to sign for the (payment of) debts until I’ve seen all the relevant documents.”

The finance minister said 1MDB must write to the federal government to make it clear that it cannot settle its debts.

“They must write a letter saying they cannot pay. If 1MDB can’t pay, then the government will be required to pay.

“I have instructed 1MDB to write the letter.”

1MDB has until May 30 to settle interest payments, amounting to RM143.75 million, on its borrowings.

Lim said this is a back-to-back guarantee, and so, the government has no choice but to pay the debts.

“To date, we have not received any letter from 1MDB. It is procedure for them to submit a letter. It’s clear that they don’t have the funds (to settle the debts).

“Only now with the new government are we exposing all this, so that the people know what is really going on.

“What Prime Minister Dr Mahathir Mohamad said is right – this is kleptocracy.” – May 23, 2018.