C4: Disclose source of US$1.2 billion payment to IPIC


PETALING JAYA: The Centre to Combat Corruption and Cronyism (C4) wants the government to disclose where it will source the US$1.2 billion (RM5.25 billion) to settle its debt with Abu Dhabi-based International Petroleum Investment Company (IPIC).

C4 executive director Cynthia Gabriel said Malaysians are worried that taxpayers’ money would be used in the settlement between IPIC and 1Malaysia Development Bhd (1MDB), both national companies under the governments of the United Arab Emirates and Malaysia respectively.

She said Prime Minister Najib Razak needed to immediately clarify the settlement without further delay.

She said Malaysians have every right to get answers to controversies involving loss of public funds which are causing mounting financial instability in the country.

“We have a right to know and a right to be assured that the rising cost of living isn’t going to get worse because of blatant abuse and mismanagement,” she said in a statement today.

Cynthia criticised the government for “attempting to paint a rosy picture” that the dispute between 1MDB and IPIC had reached a settlement.

“The government, in its statement, also stated that this move demonstrated that significant progress has been made to resolve the debt-ridden 1MDB,” she said.

An announcement at the London Stock Exchange yesterday said IPIC will receive US$602,725,000 by July 31 and a further US$602,725,000 by Dec 31 under the terms of the settlement.

1MDB and Malaysia’s MoF Inc (Minister of Finance Incorporated) also undertook to assume responsibility for all future interest and principal payments on the two bonds issued by 1MDB that were guaranteed by IPIC and 1MDB, the announcement added.

In a statement yesterday, 1MDB confirmed the settlement as part of arbitration proceedings between the two parties before the London Court of International Arbitration.

It added that 1MDB would also assume responsibility for all future interest and principal payments for the two bonds due in 2022.

“These obligations will be met by 1MDB, primarily via monetisation of 1MDB-owned investment fund units,” it said, adding that the first tranche of about US$50 million had been received.