Najib wants IPIC-1MDB settlement agreement to be made public

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KUALA LUMPUR (Oct 23): Former Prime Minister Datuk Seri Najib Razak has urged the Government to make public the settlement agreement between International Petroleum Investment Co (IPIC) and 1Malaysia Development Bhd (1MDB).
 
Speaking at the Dewan Rakyat, Najib (BN-Pekan) claimed that under the settlement agreement in 2017, IPIC had agreed to repay 1MDB US$3.5 billion owed by the latter.

“I call for the Pakatan Harapan government to present the settlement agreement to the public. Let the public know the real matter, there is nothing for us to hide,” he said.

To recap, Abu Dhabi-based IPIC was a co-guarantor of two 1MDB bonds totalling US$3.5 billion.

In relation with the bonds, between 2012 and 2014, 1MDB paid US$3.5 billion to Aabar BVI, a company registered in the Virgin Islands with the same name as a subsidiary of IPIC which 1MDB was supposed to send the funds to.

IPIC later claimed that it had not received the funds, as Aabar BVI was not its subsidiary. However, Aabar BVI’s two shareholders were also directors of the real IPIC’s unit Aabar.

Meanwhile, IPIC also loaned 1MDB US$1.2 billion in May 2015 so that the latter could pay its debts — which included interests on the US$3.5 billion bonds which IPIC has co-guaranteed.

IPIC also said that being the co-guarantor it had paid additional interest payments due to the bonds after 1MDB was unable to service the notes.

As such, the 2017 settlement agreement entailed 1MDB to repay the US$1.2 billion to IPIC, while simultaneously removing IPIC as the co-guarantor of the bonds.

Najib said that he had already worked out a solution with the Crown Prince of Abu Dhabi in order to maintain diplomatic ties between the UAE and Malaysia.

“IPIC agreed to pay back US$3.5 billion to us,” said Najib.

“I wanted to work on this after the 14th general election. That is why we conducted the settlement agreement, and they are obliged to pay us,” he said.

He also described the 1MDB-IPIC deals as “swapping assets with debts” and said that 1MDB will obtain US$6 billion in total from the series of agreements, without elaborating.

“I call for the Pakatan Harapan government to carry on the settlement agreement.

“They also need to interview the people there [in Abu Dhabi]. If they lied to us, it doesn’t matter who took the money, we have to claim it back. Do not let them go,” said Najib.

“I hope in the 1MDB issue we are not caught up in politics. We want to ensure every ringgit is returned to Malaysians,” he added.

Meanwhile, Najib and former treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah have been called to the Malaysian Anti-Corruption Commission (MACC) tomorrow to assist in investigations into the 1MDB-IPIC deals.

It was also reported that the duo may be charged on the matter on Thursday. MACC has not responded to queries by theedgemarkets.com.