KUALA LUMPUR (April 11): Abu Dhabi’s state-owned International Petroleum Investment Company (IPIC) and its subsidiary Aabar Investments PJS (Aabar) have denied any links to Aabar Investments PJS Limited (Aabar BVI) to whom 1Malaysia Development Bhd (1MDB) paid RM4.24 billion ($1.5 billion) in 2012.

“Both IPIC and Aabar confirm that Aabar BVI was not an entity within either corporate group. Furthermore, both IPIC and Aabar confirm that neither has received any payment from Aabar BVI, nor has IPIC or Aabar assumed any liabilities on behalf of Aabar BVI,” the two companies said in a statement to the London Stock Exchange.

The confirmation, they said, is reflected in each relevant accounting period by the audited financial statements of the IPIC Group.

“IPIC Group accounts are prepared in accordance with International Financial Reporting Standards (IFRS) and, for the relevant periods, have been audited by Ernst & Young. Additionally, the Abu Dhabi Accountability Authority reviews the IPIC Group accounts in each year, as well as the audit of such accounts,” said IPIC and Aabar.

IPIC and Aabar said they note from publicly available records that Aabar BVI was a company incorporated in the British Virgin Islands that was wound up and dissolved in June 2015.

The Public Accounts Committee (PAC), in its report on 1MDB tabled in Parliament last week, said the board of directors of the strategic fund did not approve the payment of RM4.24 billion as a security deposit to Aabar BVI in May 2012.

PAC also noted that 1MDB has not provided any proof that the British Virgin Islands-registered company is related to IPIC and Aabar.

Meanwhile, 1MDB said the claim by IPIC and Aabar that neither have knowledge of, nor have benefited from payments made by 1MDB to Aabar BVI, was “surprising”.

It said the substantial sums paid to Aabar BVI have been clearly recorded in the “publicly available and audited” financial statements dated March 31, 2013 and March 31, 2014.

“Further[more], the amounts paid have been subject of much commentary, starting from 2013, right up to the present.

“Accordingly, 1MDB finds it curious that IPIC and Aabar have waited until April 2016, to issue such a statement,” said 1MDB.

The fund said its records show evidence of the ownership of Aabar BVI and of each payment made, pursuant to legal agreements negotiated with IPIC managing director Khadem Al Qubaisi, who is also chairman of Aabar, and/or with Aabar chief executive officer Mohamed Badawy Al Husseiny.

“It is, therefore, a surprising claim that neither IPIC nor Aabar have knowledge of, nor have benefited from payments made by 1MDB to Aabar BVI,” said 1MDB.