KUALA LUMPUR: Malaysia's state investment firm 1Malaysia Development Berhad (1MDB) is insolvent, unable to service its debt and its president's position is being reviewed, said Finance Minister Lim Guan Eng on Wednesday (May 23).
In a scathing statement after meeting with 1MDB's Board of Directors, Mr Lim said they had confirmed that 1MDB was "insolvent" and unable to pay debts owed.
In a previous statement on Tuesday, the Finance Minister had said 1MDB had an interest pay-out of RM143.75 million (US$36 million) due by May 30.
"Another RM810.21 million (US$203 million) worth of interest is due between the months of September and November," he said.
On Wednesday, Mr Lim said the board failed to explain what happened to the RM9.8 billion (US$2.46 billion) of overseas investments that could help meet 1MDB's financial obligations over the next few years.
He said president and CEO Arul Kanda was uncertain of the value of these investments, and if they existed in the first place.
"I found Arul Kanda to be utterly dishonest and untrustworthy, and instructed the legal advisors to the Ministry of Finance to review his position as the president of 1MDB."
On Tuesday, Mr Lim had said Malaysia's debts exceeded RM1 trillion, with 1MDB a main contributor.
Its former advisor, ex-prime minister Najib Razak, is currently being investigated in connection with allegations millions was misappropriated from the fund.