1MDB delays payments to IPIC as it awaits fund

Paterniano Del Favero
Agosto 1, 2017

1MDB said that it was waiting for payments that had been due at the end of July as a result of a sale of assets.

Scandal-ridden state fund 1Malaysia Development Berhad said Tuesday it missed the Monday deadline to pay $602.73 million as part of a settlement because the money was held up by red tape, but vowed to come up with the money this month.

The 1MDB fund said in a statement it was committed to meeting its obligations to Abu Dhabi's International Petroleum Investment Company (IPIC), originally due on 31 July 2017, in August 2017.

Half was due to be paid to the emirate's sovereign wealth fund at the end of July and the rest by the end of the year, IPIC said at the time of the agreement.

Payments to International Petroleum Investment Co. would have been made from proceeds of a 1MDB rationalization plan, and funds that were expected to arrive last month have been delayed till August, it said in an emailed statement.

In April, the parties said they reached an agreement.

Malaysia dissolved 1MDB's advisory board previous year, and its assets were either shifted to the government or sold off as part of the rationalisation programme, after the fund was linked to a multi-billion dollar global money laundering scandal.

Unrelated to this dispute, 1MDB remains the subject of investigations in Singapore, Switzerland, the United States and other jurisdictions.

1MDB and IPIC were locked in a tussle that spilled over to repayments on two sets of bonds issued by the Malaysian investment company, leading to a default in April 2016.

He has been under pressure to resign following disclosure that almost $700 million was deposited into his personal account from funds traced to 1MDB. Mr Najib, who returned most of it, had claimed innocence and was cleared of any wrongdoings by Malaysian authorities. IPIC guaranteed the bonds plus $2 billion in interest.

"As these are the funds which will be used to pay IPIC, 1MDB has written to IPIC to inform them of our commitment to meet the obligations in August 2017".

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