ISLAMIST party PAS has said it is crucial that the rationalisation plan for troubled 1Malaysia Development Bhd (1MDB) succeeds as failure to fully repay its debts will cost the country an extra US$1.9 billion (RM8.1 billion) annually in interest.

The state investment fund missed a debt payment deadline on July 31 for more than US$600 million to Abu Dhabi’s government-owned International Petroleum Investment Co (IPIC).

IPIC later agreed to extend the deadline, allowing 1MDB to pay at least US$310 million by August 12 and the rest of the money, plus interest, by August 31.

PAS deputy president Tuan Ibrahim Tuan Man said 1MDB chief executive officer Arul Kanda Kandasamy had briefed the party’s senior leadership on the company’s rationalisation plan, which would turn the debt-laden fund around and ensure that it no longer received government funding.

Tuan Ibrahim said the plan must succeed, failing which the people of Malaysia would ultimately bear the burden of the interest costs as a result of late payments.

“The late payments will cause interest costs to rise, which would burden the people and the future government, like it or not,” he said in a statement today.

He said the Barisan Nasional government must be held accountable for 1MDB’s mounting debts, adding that the Finance Ministry should begin reporting to Parliament on matters relating to 1MDB and its assets.

“While 1MDB should be given a chance to settle its debts, we should all work together to topple BN so that those who have left us with the 1MDB debts will be brought to justice.”

“The ones who pay are the people, not those who are in power who have swindled taxpayers by using 1MDB.

“Even if all the properties and assets of those involved are confiscated, it could not pay off the 1MDB debts.

“That is the cutting reality and the real effect of the 1MDB scandal on the people.

“It can no longer be denied that 1MDB has been a catastrophe for the nation.”

Tuan Ibrahim said even if a new government was formed after the 14th General Election, 1MDB’s debts, estimated at RM40 billion, must still be dealt with.

PAS is also calling for a Royal Commission of Inquiry to investigate 1MDB. – August 9, 2017.