Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on April 13, 2016.

 

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) said it will pursue “all available avenues” open to it after International Petroleum Investment Co (IPIC) denied having any links to the British Virgin Islands firm that was paid US$3.5 billion (RM13.62 billion) by the troubled state fund.

IPIC, which is owned by the Abu Dhabi government, and its unit Aabar Investments PJS (Aabar) on Monday issued a joint statement denying ownership of Aabar Investments PJS Ltd (Aabar BVI). They also denied receiving any payments from Aabar BVI or of assuming any liabilities on behalf of the firm.

In a statement yesterday, 1MDB said it is confident of its legal position in relation to the US$3.5 billion cash deposits paid to Aabar BVI between 2012 and 2014.

“For an as-yet-to-be-determined reason, IPIC and Aabar are only now seeking to deny ownership of Aabar BVI or receipt of the payments.

“This will no doubt be the subject matter of further enquiry and discussion. 1MDB is exploring all its options in this regard,” it added.

Opposition lawmaker Tony Pua yesterday said the denial by IPIC and Aabar had “finally confirmed what critics of 1MDB have suspected all along — that 1MDB has been making payments of billions of dollars to a fictitious Aabar BVI, pretending that it was payments to the real Aabar of Abu Dhabi”.

Pua claimed that 1MDB was never able to provide the proof of ownership of Aabar BVI because “Aabar BVI is clearly a fake entity created to siphon the US$3.51 billion or more from 1MDB”.

In response to Pua’s statement, 1MDB reiterated that it had shared all documents in its possession, and those it could obtain, with the National Audit Department (NAD).

“It is these very same documents shared by 1MDB with the NAD, which show the ownership of, payments to, and underlying legal documents relating to Aabar BVI.

“Hence, there are no ‘lies’ or suppression of information, as wrongly claimed by YB Tony,” said 1MDB, adding that there are clear references to the payments made to Aabar BVI in the 2013 and 2014 1MDB audited financial statements.

“The company has always maintained and continues to maintain that if any wrongdoing is found, then action must be taken, according to the law,” it said.

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