THE government has paid RM13.9 billion since 2017 to settle the debt obligations of 1Malaysia Development Bhd (1MDB) and SRC International Sdn Bhd (SRC), said Finance Minister Lim Guan Eng.

In a statement today, he said the government, through the Finance Ministry and the ministry’s incorporated companies, has made loan repayments of RM8.8 billion on behalf of 1MDB and SRC –  RM6.7 billion in 2017 and RM2.1 billion in 2018.

Lim said the amount to be paid this year is RM2.4 billion.

The money for payments comes from a public fund, a 1MDB asset recovery fund that has received about RM1.45 billion in repatriated funds so far, and Tabung Harapan Malaysia, which has RM203 million, he said.

“As recently announced in Budget 2020, a total of RM2.7 billion has been set aside to service the debt interest of 1MDB and SRC in 2020,” he said.

Lim said the previous government concealed the debt repayments for 1MDB and SRC, which were only exposed after the change of federal government on May 9, 2018. 

“Clearly, the repayments by the government to cover the losses related to the 1MDB and SRC scandal were part of the kleptocracy due to the financial misappropriation and misconduct of the previous government,” he said.

Lim said the financial scandals surrounding and fund misappropriations committed by the previous government, were not limited to 1MDB and estimated to involve RM150 billion, with 1MDB alone accounting for RM51 billion, including interest, which would only be fully paid up in 2039. 

“Imagine the huge impact if the RM13.9 billion paid in the period 2017-2020 to cover losses related to the 1MDB and SRC scandal were used for the people’s welfare.

“However, this government is staying committed to fulfilling its trust to improve the development and welfare of the people,” he added. – Bernama, October 29, 2019.