Looks like it’ll take more than a change of CEOs to get 1Malaysia Development Berhad (1MDB) out of the frying pan – the Federal Government’s strategic investment arm once again failed to pay up a RM2 billion debt due on December 31.
Sources told The Malaysian Insider that 1MDB has been given a second extension on its repayment, and has until January 30 to settle the debt it owes to Malayan Banking Bhd (Maybank) and RHB Bank Bhd.
The debt was originally due to be repaid on November 30.
Sources also say that Bank Negara Malaysia called for a meeting with 1MDB’s top brass, including chairperson Lodin Wok Kamaruddin, director Ismee Ismail and outgoing CEO Mohd Hazem Abdul Rahman, to address the issue. Apparently, the three top men in charge were given a stern warning.
Bank Negara warned that should 1MDB fail once again to pay up its debts on January 30, all three top execs would face action.
Maybank, RHB and Bank Negara declined to comment publicly on the matter. 1MDB has so far not responded to TMI‘s request for comment.
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