1MDB does not owe IPIC US$481 million - Najib

The 1Malaysia Development Berhad (1MDB) does not owe International Petroleum Investment Corporation (IPIC) USD481 million, Prime Minister Datuk Seri Najib Razak said.

Najib who is also the Finance Minister said there was no such amount in the company’s 2014 financial report, which ended in March 21, 2014

In a written reply to MP Tony Pua (DAP- Petaling Jaya Utara), Najib said any party had the right to determine the method of reporting their financial statements.

On May 29, Finance Ministry in a statement stated that 1MDB has entered into a binding agreement with the IPIC and its unit, Aabar Investments (Aabar), involving a payment of US$1 billion.

It also noted that as part of the agreement, IPIC would pay US$1 billion, on or before June 4, 2015, which would be used to repay a US$975 million (RM3.5 billion) loan, in advance of its due date, to a syndicate of international bank lenders.