KUALA LUMPUR (Oct 27): Prime Minister Datuk Seri Najib Tun Razak said 1Malaysia Development Bhd (1MDB) did not owe International Petroleum Investment Corp (IPIC) US$481 million (RM2.05 billion) for redemption of options linked to 1MDB's power assets.

In 2012, 1MDB gave IPIC's subsidiary Aabar Investment the options to acquire 49% in 1MDB subsidiaries Powertek Investment Holdings and 1MDB Energy (Langat) Sdn Bhd. The options were given to Aabar to secure IPIC as a guarantor for 1MDB's US$3.5 billion bonds.

Yesterday, Najib, who is also Finance Minister and chairman of 1MDB's advisory board, said in Parliament "there is no such amount paid by 1MDB to IPIC".

"Notes in 1MDB's financial statement as at March 31, 2014 had clearly stated that there is no such amount paid by 1MDB to IPIC.

"I wish to stress that any party has the right to decide its method of reporting in their own financial statements," Najib said in a written reply to Petaling Jaya Utara MP Tony Pua yesterday.

Pua had asked Najib to state how much 1MDB paid to Aabar to redeem the options and whether 1MDB still owed IPIC the US$481 million as stated in the audited report of IPIC as at December 2014.

Early this month (Oct 2015), The Malaysian Insider reported that Pua had hit out at 1MDB for not answering questions he had raised in the past over its deal with IPIC.

He said 1MDB had only denied his accusations and claimed all were disclosed in their financial statements.