Three questions 1MDB has to answer over IPIC payment default

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The trouble-ridden 1MDB said it is committed to making the promised payment to the Abu Dhabi based IPIC, a payment that it missed on July 31.

It said in a media statement yesterday that its payment was delayed due to regulatory issues.

“1MDB itself is awaiting funds that were due to be received in July 2017. Due to the need for additional regulatory approvals, the receipt of those funds has been delayed to August 2017,” it said.

It also maintained the payments to IPIC will be made with the money it obtained from its ‘rationalisation plan’.

“All payments due from 1MDB to IPIC will be made from the proceeds of the 1MDB rationalisation plan,” it said.

However, questions arise from the statement by the 1MDB media team.

The first question is regulatory approvals from where? From Bank Negara Malaysia? or from elsewhere?

The other question is whether the payments to IPIC will be made from the sale of the energy unit under Edra?

The Chinese consortium, IMBD said last year, exchanged the share sale agreement with cash for its purchase of Edra for RM9.3 billion.

Since there are no other actions that are being carried out in the rationalisation plans – pending the arrival of a new buyer of the Bandar Malaysia project – it is clear the money to pay IPIC will have to come from Edra’s sale.

This then raises the last question: Where is Edra’s money?

Does 1MDB really need regulatory approvals to receive Edra’s money, which we were told was already paid in cash almost a year ago?

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