(May 24): Troubles at Malaysia’s state investment company 1MDB deepened as its officials told the government the fund is insolvent and unable to repay debts that could amount to almost US$7 billion ($9.40 billion) over the next five years.

1MDB’s directors said they had questioned US$2.5 billion worth of purported investments held overseas and the company’s management failed to supply proof of such holdings over the past two years, according to a finance ministry statement on Wednesday. Its former chief financial officer told the government in March the company wouldn’t be able to service interest payments due in April and May, Finance Minister Lim Guan Eng said.

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