KUALA LUMPUR (April 7): In a shocking revelation, the Public Accounts Committee (PAC) said the board of directors of 1Malaysia Development Bhd (1MDB) did not approve the payment of RM4.24 billion as security deposit to Aabar Investments PJS Ltd back in May 2012.

It added that to date 1MDB has also not provided any proof that Aabar Investments PJS Ltd is related to Aabar Investments PJS and International Petroleum Investment Corp (IPIC) which are owned by the government of Abu Dhabi.

IPIC had co-guaranteed two bonds totalling US3.5 billion that were issued by 1MDB via Goldman Sachs to purchase power plants. Under the agreement, 1MDB was to give IPIC a security deposit.

However, there have been allegations that the RM4.24 billion was not paid to IPIC or its subsidiary Aabar Investments PJS, but it was instead paid to a company with similar name Aabar Investments PJS Ltd which is said to be set up by two top IPIC executives who have since been sacked.