Thursday 28 Mar 2024
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KUALA LUMPUR (March 2): DAP National Publicity Secretary Tony Pua has asked 1Malaysia Development Bhd (1MDB) to show proof of the US$1.1 billion investment it claimed it had redeemed in cash after the strategic investment fund exited from the Petro Saudi deal.

“Show us the money,” said Pua in a press conference here today.

"The one way to silence us is to show us the redemption statement of the US$1.1 billion from Cayman, payable in cash to which bank. Don't show us another bank account with US$1.1 billion, not from Cayman Island," he added.

1MDB president and group executive director Arul Kanda Kandasamy had yesterday (Sunday, March 1) claimed 1MDB received its investment in full, with a profit of US$488 million, in response to an expose by whistle blower website Sarawak Report.

To recap, 1MDB had invested US$1 billion cash for a 40% equity interest in 1MDB Petro Saudi Ltd (1MDB Petro Saudi), a subsidiary of Petro Saudi International Holdings Cayman Ltd (PSI Cayman) in September 2009.

According to the joint venture (JV) agreement disclosed by Sarawak Report, Petro Saudi International Ltd (PSI), the parent company of PSI Cayman, would inject asset worth of US$1.5 billion, representing a 60% equity interest in 1MDB Petro Saudi.

Based on the said JV agreement, PSI said it owns all the legal and beneficial interest in assets which have an estimated value of US$2.7 billion.

Pua explained PSI had on July 4, 2009, entered into a farm-in agreement with Buried Hill Energy (Cyprus) Public Company Limited, for its Block III PSA in Turkmenistan.

In the farm-in agreement, it was said that Buried Hill, which obtained the exploration licence, would be the operator of Block III; and PSI would received 50% working interest, in return for funding all of the appraisal and pre-development costs.

However, this agreement was terminated on Nov 24, 2009, according to the Sarawak Report.

"What we know is, as at Nov 24, 2009, PSI did not have US$1.5 billion of asset in the joint venture with 1MDB [1MDB Petro Saudi]. If you look at the agreement, it is a breach,” Pua alleged.

He then questioned as to why 1MDB had subsequently sold its 40% stake in 1MDB Petro Saudi back to PSI for US$1.2 billion, which it then lent back to 1MDB Petro Saudi Ltd in an 11-year Murabaha Notes.

Pua also urged the Auditor General to immediately conduct an audit on 1MDB, as it is a matter of immediate urgency.

Segambut MP Lim Lip Eng, who was also present at the press conference, gave 24 hours to the relevant authorities — police, Malaysia Anti Corruption Commission — to initiate investigation on 1MDB.

The Sarawak Report had yesterday (Sunday, March 1) exposed the orchestration of the whole PSI 1MDB Joint Venture deal, and accused tycoon Jho Low for being behind the deal. However, PSI had since denied reports that funds from 1MDB went to a third party. It is also seeking legal advice for its next course of action.

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