Former prime minister Dr Mahathir Mohamad has asked Prime Minister Najib Abdul Razak to explain how 1MDB intends to pay the rest of its debt that could amount to around RM40 billion.
This was after Najib in a parliamentary written reply said 1MDB had repaid almost RM3.9 billion in bank debts and short-term debts.
They included RM229.5 million revolving credit facility from Affin Bank, RM950 million in standby credit from the government, RM2 billion term loan facility from Mastan Investment NV and US$150 million (RM663.1 million) from Exim Bank.
Mahathir said these debts were likely paid using the RM10.97 billion 1MDB raised from selling various assets, including Edra Global Energy Berhad, Bandar Malaysia and Tun Razak Exchange lands.
"The payments listed add up to RM3.9 billion. So 1MDB is left with RM7.07 billion. But the total debt incurred by 1MDB is RM50 billion as of January 2016.
"It would be interesting to know whether 1MDB has other assets to sell to pay the balance of the RM50 billion debts amounting to RM40 billion.
"If there are no more assets, how does 1MDB propose to raise this RM40 billion?" he said in a blog posting tonight.
While 1MDB has cleared its bank debts, it still has huge sums owed in bonds and loans from statutory bodies.
They include two bonds totalling US$3.5 billion for 1MDB's acquisition of power assets and a US$3 billion bond raised from the joint-venture with Abu Dhabi Malaysia Investment Company,
The International Petroleum Investment Company (IPIC) is also claiming US$6.5 billion in payments and compensation from 1MDB in international arbitration.
Mahathir questioned how the remaining RM40 billion debt had been spent.
"It is a large sum of money. It must be somewhere. Has the money been invested? If so in what? Or has it been frozen?
"If so, who has frozen the money and why. Is 1MDB entitled to claim the frozen money?
"Has 1MDB brought back all the unfrozen money invested not in accordance with the approval of Bank Negara as required? If not where is the money?" he said.
Mahathir noted that Bank Negara had previously ordered 1MDB to repatriate funds which it sent overseas without the central bank's proper approval.
Mahathir, who is also Parti Pribumi Bersatu Malaysia (Bersatu) chairperson, said the prime minister's current explanation only raised more questions than answers.
"Perhaps the prime minister can explain. It is the people’s money. They are entitled to know as in the end they will have to pay, one way or another," he said.
