Lim Guan Eng has refused to ink a document which authorises the Finance Ministry to settle 1MDB's debt of RM143 million, which is due next week.

The finance minister has instructed 1MDB CEO Arul Kanda Kandasamy to inform the ministry in writing on whether the firm can fork out the sum or not.

“I was shocked that the first document I had to sign is to pay off 1MDB's debt. I refused to sign unless I see all the relevant documents.

“We have to make the payment before May 30 so as part of the procedure, he (Arul Kanda) has to inform the government.

“He has been instructed to write a letter to state whether 1MDB can pay or cannot pay... he has to do it as soon as possible,” he added.

Lim was speaking to reporters after a briefing by Arul Kanda, 1MDB’s former CFO Azmi Tahir and former general-counsel Ivan Chen.

Earlier, the finance minister held a separate meeting with two 1MDB directors Norazman Ayob and Kamal Mohd Ali.

Sham 'fund units'

Lim then referred to 1MDB's 'fund unit' investments which are purportedly worth a total of RM9.8 billion.

He said if these investments could be redeemed, it would be able to cover the debts of the state fund. 

"If the RM9.8 billion investments were still available, then the government of Malaysia would not need to fork out RM7 billion to pay the debts of 1MDB, and this is what we have paid to date."

Arul Kanda had also stated in the briefing that he was uncertain of the value of the fund units or whether they even exist, Lim said.

This contradicted what he said in an interview with Malaysiakini before the recent polls, in which he insisted that the fund units were available to repay 1MDB's debt.

In total, 1MDB previously claimed it held approximately RM9.8 billion or US$2.5 billion in fund units, of which US$940 million was held by its subsidiary Brazen Sky Ltd, and another US$1.56 billion by a separate subsidiary, 1MDB Global Investment Ltd.

However, the US Department of Justice claimed the fund units were "relatively worthless" and was a front for money that had been stolen.

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