Newly appointed Finance Minister Lim Guan Eng insists that the ECRL cannot be cancelled, because RM 20 Billion has already been paid, despite hardly any work being done.Elsewhere it has been reported that some RM 22 Billion is payable in penalties if the contract is cancelled, to the lender Exim Bank of China.
Malaysian Insight reported:
Even more onerous is the contract with Exim Bank of China. The loan with the financial institution has no termination clause and termination of the contract results in a default of the loan that needs to be repaid within 30 business days.
Any third rate lawyer could have advised Lim Guan Eng that there is enough there to not have to worry about penalties.
However,before we go there; let us not forget that the ECRL contracts are probably illegal.Recall the Sarawak Report story
OUTRAGE! - Najib's Secret Deal With China To Pay Off 1MDB (And Jho Low's) Debts! - SHOCK EXCLUSIVE OUTRAGE! - Najib's Secret Deal With China To Pay Off 1MDB (And Jho Low's) Debts! - SHOCK EXCLUSIVE
And then there are these issues:
1MDB borrowings may almost all be illegal, but will Najib accept blame or will he have Johari Ghani take the fall?
ECRL project gets a reprieve from government as RM20 billion has already been paid