1MDB: Justo's arrest proves that facts were distorted

KUALA LUMPUR: The arrest of former PetroSaudi International (PSI) Ltd former executive Xavier Justo is proof that the facts surrounding 1Malaysia Development Berhad (1MDB) were deliberately distorted.
Finance Minister (II) Datuk Seri Ahmad Husni Hanadzlah said 1MDB was on the right track and issues surrounding the state's investment arm should never arisen.
"1MDB is on the right track. The government is waiting for the full report before any further action,"Husni said when debating the Malaysian 11th Plan at the Dewan Negara here.
Husni added the public should not be easily influenced by the reports made by whistleblower portal Sarawak Report, which has reported leaked information by Justo.
"Any issue arising should be looked at factually and we cannot depend on ad-hoc facts, allegations or just theory, there must be evidence,"
"And (with Justo's arrest) the government would take this 'evidence' to continue with our investigation,"Husni said.
Husni added 1MDB is on its rationalisation plan to clear its RM42 billion debt.
The International Petroleum Investment Company (IPIC) and its subsidiary Aabar Investments had make an initial payment of US$1 billion to 1MDB to help 1MDB pay off a US$975 million loan from a consortium of banks led by Deutsche Bank by Aug 31 this year.
Assets IPIC will receive in lieu of this payment have not be specified.
1MDB reportedly took the US$975 million loan in 2014 to buy back Aabar's option to purchase 49% of 1MDB's power assets, in return for IPIC and Aabar guarantees for loans totaling US$3.5 billion.
1MDB is expected to provide IPIC and Aabar with a number of financial assets, including the controversial units that are held in the company's BSI Singapore account.
The government has previously stated that the BSI Singapore account had paper assets worth US$1.103 billion.
The US$1 billion payment from IPIC had reduced 1MDB's debt by some RM3.5 billion.