Where did 1MDB payments to Aabar go, BN's PAC rep asks MOF

What happened to the previous payments from 1MDB to Abu Dhabi's Aabar?

This question has been posed by Kulim Bandar Baru MP Aziz Sheikh Fadzir, who is also one of the BN representatives on the Public Accounts Committee (PAC).

Aziz said this following the announcement of the settlement between 1MDB and International Petroleum Investment Co (IPIC), which is owned by the government of Abu Dhabi.

"I am supportive of the settlement... but the Finance Ministry must explain to the PAC where the payments 1MDB made to Aabar go to before this," Aziz (photo) told Malaysiakini when contacted.

IPIC initiated arbitration proceedings last year to claim US$6.5 billion from 1MDB. The settlement was announced yesterday.

According to filings made to the London Stock Exchange, IPIC said it will receive US$1.2 billion in two equal payments on July 31 and Dec 31.

The filing also noted that both parties had agreed to "enter into good faith discussions in relation to payments made by 1MDB Group to certain entities".

Although it is not mentioned what the "certain entities" are, it is likely that these were referred to the US$3.5 billion payments made by 1MDB to Aabar Investments PJS Ltd (Aabar BVI), incorporated in the British Virgin Islands.

According to the PAC report on 1MDB published last year, the US$3.5 billion were from four separate transactions to Aabar BVI - or Aabar Ltd as it was named in the report.

The first was a US$1.367 security deposit for US$3.5 billion bonds that IPIC helped 1MDB to raise, followed by a US$993 million payment for the termination of the bond options.

There were also two payments of US$885 million and US$295 million, which the PAC said it could not determine whether these were security deposit top ups or part of the option termination payment.

IPIC has said that it has no relation to Aabar BVI and neither had it received the payments.

1MDB said this was surprising, claiming that its records show Aabar BVI to be owned by IPIC and Aabar Investments PJS (Aabar).- Mkini