Najib administration deceived the public on 1MDB: Guan Eng

PUTRAJAYA: Newly appointed Finance Minister Lim Guan Eng said that the interest accrued from 1MDB's borrowings is one of the most urgent matters to be resolved as the state investment arm is due to pay out another RM143.75 million on May 30.
He also revealed that almost RM7billion has been paid by the Ministry to service 1MBD's interest.
Speaking to a press conference today on his first day assuming office, Lim said that if 1MDB failed to pay, the government will have to service the interest.
"If the 1MDB can't come up with the money, they have to write to us and we will have to pay the sum," he said.
"Arul Kanda remains the 1MBD CEO and to date has said that they are fully capable of servicing their debts and obligations. I have also requested the Directors of 1MDB, Datuk Kamal Ali and Datuk Norazman Ayob to brief the ministry ... I have given instruction to Arul Kanda to brief and clarify if 1MDB is able to pay the above sum next week," he said.
In a telling press conference, Lim revealed that Senior Treasury officials such as Deputy Treasurer-General Datuk Siti Zauyah Mohamad Desa and Auditor General Tan Seri Madinah Mohamad we're blocked from accessing certain accounts and reports.
"There were also complaints that certain red files were only accessible to certain parties which impeded officials and auditors to carry out their professional responsibilities with integrity," he said.
He said that most of these "red files" had to do with 1MDB.
"1MDB is a main factor that some of this information was not fully disclosed. We now want everything to be an open book. I have directed that all accounts be accessible to both the Treasury and the Auditor-General in the interest of competency, accountability and transparency," he said.
He said that it is clear the previous government had conducted an exercise of deception to the public about hot-button issues like 1MDB and even misinterpreted the financial situation to Parliament.
He revealed that the finance ministry has been bailing out the 1MDB debt which has amounted to close to RM7 billion.
He said that 1MDB had deceived the public claiming that they had serviced interest through a “successful rationalisation exercise” when the MoF has been bailing them out all this while.
"The sum includes payments made to IPIC as part of a settlement agreement amounting to RM5.05 billion," he said.
He also added that some RM810 million in payments were due between the months of September and November this year.
Lim also said that after consolidating the financial accounts of the nation, the nation's debt could be more than RM1 trillion.
"I would like to agree with what Tun Mahathir said, the debt could be more after we have consolidated all our accounts," he added.
Lim, however, said that the fundamentals of the government finances remain strong and robust.
“We are able to clean up the finances. We will be able to boost public and investor confidence in Malaysia,” he added.