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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