Utusan Online quoted the 1MDB chairman as saying he was confident the company would be able to repay all its debts through its rationalisation plan.
“We can pay through monetisation of existing assets.
“In TRX City, there is the Exchange Building 106, which is the tallest building in Malaysia and the residents will pay rent,” he said at an event in Kota Bharu.
The government has been laying the groundwork to shut down 1MDB for some time.
1MDB was created by the government to promote long-term economic development for the benefit of the Malaysian people.
1MDB’s valuable assets are two massive plots of land in Kuala Lumpur and one on Penang island.
In March 2017, Prime Minister Najib Razak had said 1MDB, which has incurred debts up to RM50 billion as of January 2016, had cleared all its bank debts and short-term debts.
“For now, 1MDB does not have any bank debt and short-term debt,” Najib had said in a written parliamentary reply.
On Jan 23, Najib had said there had been “lapses in governance” in 1MDB.
He said the government was aware of 1MDB’s failings, which was why it had launched an investigation involving multiple authorities.
“Their findings were taken on board – and the company’s board was dissolved, its management team changed, and its operations reviewed,” he said.
Najib said the 1MDB issue had been politically exploited, adding that there was “a concentrated campaign” to sabotage the Malaysian economy.
According to the finance ministry, 1MDB had made the following repayments:
1. Paid off RM229.5 million revolving credit facility to Affin Bank in full by Nov 23, 2015.
2. Cleared RM950 million standby credit to the government in full by March 31, 2016.
3. Repaid RM2 billion term loan facility to Marstan Investment NV by April 8, 2016.
4. Cleared US$150 million term financing facility with EXIM Bank by April 15, 2016.
Shocking neglect of duty by 1MDB board and chairman, says Pua