LIM Guan Eng has confirmed news reports that the Finance Ministry (MoF) had used payments from Bank Negara Malaysia (BNM) and Khazanah Nasional to service debt obligations for 1Malaysia Development Bhd (1MDB).

The finance minister said in a statement that the money raised by BNM and Khazanah was used to pay IPIC/Aabar as part of its RM5.05 billion settlement agreement.

Lim said the payment was among the RM6.9 billion payment made by the Finance Ministry on 1MDB’s behalf due to the state fund’s inability to settle its debt obligations.

He said the Khazanah funds came from the redemption of Redeemable Cumulative Convertible Preference Shares (RCCPS) amounting to RM1.199 billion.

At the same time, BNM had contributed RM2.066 billion after it had entered into a deal to buy a piece of land adjacent to Sasana Kijang.

He said MoF on December 14 through its indirect wholly owned company, Hartanah Mampan Sdn Bhd (HMSB), sold the plot to Bank Negara Malaysia. – May 24, 2018.