Thursday 28 Mar 2024
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(Sept 18): Ten days after allegations surfaced that a US$1.4 billion (RM6.02 billion) payment in November 2014 from 1Malaysia Development Bhd (1MDB) to an Abu Dhabi state investor’s subsidiary was missing, The Wall Street Journal (WSJ) reported today that another US$1 billion remains unaccounted for.

Officials in the emirate were trying to trace a further US$993 million that 1MDB reportedly paid to the International Petroleum Investment Co (IPIC), WSJ said.

The business daily reported on September 9 that IPIC, a United Arab Emirates state investment vehicle, had guaranteed the US$3.5 billion in bonds that 1MDB issued to finance the purchase of power plants in 2012.

In return, IPIC had the option to buy a 49% stake in the power plants as well as collateral for the bond.

1MDB had reported it repaid IPIC US$1 billion, which the latter said it did not receive the second payment. The state investment fund said its audited financial accounts, signed off by Deloitte, had accounted for the allegedly missing US$1.4 billion.

On Monday, Switzerland’s federal prosecutor said Malaysia had agreed to arrange for Swiss investigators to interview witnesses in their investigation of alleged corruption and money laundering related to 1MDB.

Today’s allegation adds to Prime Minister Datuk Seri Najib Razak’s woes, since 1MDB is his brainchild and has accumulated debts of more than RM42 billion since its inception in 2009.

Malaysians took to the streets on August 29 and 30 in the Bersih 4 rally to demand Najib’s resignation over the 1MDB scandal and claims that RM2.6 billion from a Middle-Eastern donor was deposited into his personal accounts ahead of the 2013 general election.

On Wednesday, a “red shirt” rally was held to counter Bersih 4 and as a show of support for Najib. – The Malaysian Insider

 

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