KUALA LUMPUR: PetroSaudi International Ltd denied reports that funds from 1Malaysia Development Berhad (1MDB) went to third parties, adding yesterday that its subsidiaries had received the entire cash for a joint-venture company.

The privately-owned oil exploration and production company said in a statement yesterday that upon 1MDB’s exit, PetroSaudi had paid the Malaysian strategic investment fund in full and both parties no longer had any financial or legal relations.

“We wish to state categorically that all funds from 1MDB went to PetroSaudi-owned entities — any other inference is false,” said the company in the statement in response to an expose by whistleblower portal Sarawak Report.

PetroSaudi said that it was seeking legal advice on the appropriate course of action to take against “these malicious and slanderous allegations.”

It said that its subsidiaries received the full US$700 million (RM2.53 billion).

It added that the company paid US$2.3 billion to 1MDB and the Malaysian company exited the investment.

1MDB’s audited accounts as at March 31, 2014, showed that the company received the US$2.3 billion and made a profit of US$488 million.

In a separate statement, 1MDB president and group executive director Arul Kanda Kandasamy also said the firm “notes with concern” the claims reported about its business arrangements with PetroSaudi.

“1MDB exited the relationship in 2012, and received back its investment in full, with a profit of US$488 million.

“These facts, and all details related to this transaction, may be verified by reference to our audited accounts, which are publicly available on the Suruhanjaya Syarikat Malaysia website,” he said.

Arul on Feb 21 also said the same, in response to earlier criticism about 1MDB’s joint venture with PetroSaudi. — The Malaysian Insider

This article first appeared in The Edge Financial Daily, on March 2, 2015.