PRIME Minister Najib Razak today blamed 1Malaysia Development Bhd (1MDB)’s failure to pay Abu Dhabi’s sovereign wealth fund the US$600 million (RM2.6 billion) it was due yesterday on “technical” issues, saying it was not because 1MDB had no money.

“Regarding 1MDB (and its failure to repay International Petroleum Investment Company, or IPIC), we have released a statement that it was due merely to a technical issue, and not because we are not able to pay back.

“So we trust that it will not affect the confidence in the country’s economy,” said Najib in reply to opposition leader Dr Wan Azizah Wan Ismail’s supplementary question in Parliament today.

Dr Wan Azizah had posed a question to Najib on whether 1MDB’s failure to make the payment to IPIC would have an adverse effect on investor sentiments.

Mubadala, which now owns IPIC, issued a statement today giving 1MDB five days make the US$600 million payment it missed yesterday, failing which 1MDB will “become subject to additional obligations”.

1MDB agreed in April after private arbitration to pay IPIC US$1.2 billion in two instalments by the end of the year.

Meanwhile, Dr Wan Azizah put it to the prime minister that the country’s large debt was burdening the people and damaging the economy.

Najib denied this, saying the national debt was under control and the fiscal deficit was expected to decline to 3% from 6.7% this year.

“That is not an additional question, it is a mini lecture, but I accept that such is the opposition’s job, otherwise it will look poor from a political point of view.

“But the national debt is under control and could even be reduced from 54% of the GDP to 52.5%.

“The fiscal deficit is projected to reduced from 6.7% to 3% by the end of the year and we are working towards a balanced budget. ” – August 2, 2017.