The former prime minister, who has been one of the state investment arm’s fiercest critics, said the agreement between the two entities did not resolve anything as it seemed that 1MDB had settled its debt twice.
“The money was transferred to IPIC via Aabar Investments PJS Ltd (BVI), which IPIC claims is not its subsidiary.
“1MDB paid money to a fake company (syarikat palsu). Now it has to pay the actual company, so we lose money twice (kita rugi dua kali),” he said at a press conference here this evening.
Earlier today, however, Second Finance Minister Johari Abdul Ghani revealed the existence of a letter confirming that Aabar Investments PJS Ltd (BVI), or Aabar BVI, is a subsidiary of IPIC even though the Abu Dhabi state-owned firm has denied it.
The minister told Malaysiakini that based on records provided by 1MDB to the Public Accounts Committee (PAC), prior to the settlement agreement, Aabar BVI was a subsidiary of IPIC.
He said this was confirmed by the Registrar of Corporate Affairs of the British Virgin Islands through its letter dated Aug 11, 2016.
This week, IPIC and 1MDB announced they had resolved the debt dispute with a conditional US$1.2 billion (RM5.22 billion) deal.
Under the terms of the agreement, reported to the London Stock Exchange, 1MDB will pay the US$1.2 billion in two instalments in July and December to IPIC after proceedings before the London Court of International Arbitration.
The agreement was earlier also criticised by DAP’s Tony Pua and PKR’s Wong Chen.
Mahathir also said that the main question that needed to be answered in this case was where the money that was pumped into IPIC had gone.
“Who acquired the money that was paid to the fake company? Where did it go?”
FMT
MUHYIDDIN CATCHES NAJIB’S ACHILLES HEEL: WHO’S BUYING 1MDB ‘UNITS’ – NAME & REVEAL DETAILS IF YOU DARE
Parti Pribumi Bersatu Malaysia (Bersatu) president Muhyiddin Yassin has questioned how 1MDB would be able to monetise its investments to pay the settlement with the International Petroleum Investment Corporation (IPIC).
“If it is through the sales of 1MDB investment units in Brazen Sky Ltd, who is the buyer of these investments and for how much? Does this investment unit actually exist?” he asked in a statement today.
The settlement announced on Apr 24 would, among others, see 1MDB pay IPIC US$1.2 billion by the end of the year.
1MDB had said that it would do so buy monetising its investments, and has already received the first tranche of US$50 million in cash.
It did not specify which investments are being monetised, but 1MDB has US$940 million worth of investment “units” owned by its subsidiary Brazen Sky Ltd.
Bloomberg last week reported 1MDB will monetise its Brazen Sky Ltd and 1MDB Global Investment units worth US$2.5 billion.
Finance Minister II Johari Abdul Ghani told reporters today that the 1MDB investments involved are worth US$2.4 billion.
Why no one held to account?
The dispute between 1MDB and IPIC arose after 1MDB made US$3.5 billion in payments to Aabar Investments PJS Ltd, which was incorporated in the British Virgin Islands (Aabar BVI).
The money was intended for IPIC’s subsidiary Aabar Investments PJS, which is based in Abu Dhabi, in return for guaranteeing 1MDB bonds. IPIC had claimed that Aabar BVI is not its subsidiary, despite similar names.
Meanwhile, Muhyiddin questioned how could such a large sum be transfered to the wrong company, and no one is being held accountable. He asked why is the prime minister and minister of finance did not appear keen to recover the funds sent to Aabar BVI.
When met by reporters in Kuala Lumpur today, Johari pointed to the IPIC’s announcement at the London Stock Exchange saying that IPIC would in fact cooperate to help recover the US$3.5 billion.
“They want to collaborate with 1MDB in order to recover the money, if it has been confirmed that the money has been paid to Aabar BVI,” he said.
Johari: Some things are beyond me
Johari also reiterated that he had proof that Aabar BVI is in fact an IPIC subsidiary, which is the reason he decided to allow the arbitration between 1MDB and IPIC to proceed.
However, the government decided to look after the “bigger picture” by settling the case rather than to allow the arbitration to run its course.
“At the end of the day, the government felt that they are looking at the bigger picture on this, in terms of the relationship between Malaysian and Abu Dhabi and so on.
“So I think that’s’ beyond me. I’m going for the facts, but this is a bigger thing.
“The prime minister has made the decision for the country. That’s it,” Johari said, while stressing that the negotiation was between the Prime Minister’s Office and IPIC.
When asked to show his evidence showing that Aabar BVI is an IPIC subsidiary, he replied, “You don’t trust me? I’ve said it in parliament!”
To another question asking if it would have been better for the arbitration to run its course than to settle, Johari said it was normal for a dispute to be settled outside of an arbitration.
“It’s just like a court case. Everybody have their facts to fight (their case), and then everybody wants to settle out-of-court.
“It’s a normal court process,” he said.
MKINI
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