Malaysian Ministers Backtrack on Abu Dhabi Settlement!

Umno supreme council member Mohd Puad Zarkashi has refuted claims that 1MDB has to make “double payments” to Abu Dhabi’s International Petroleum Investment Corporation (IPIC).

Puad also claimed that 1MDB will not assume the principal payments on two bonds, guaranteed by both 1MDB and IPIC, which contradicted statements by both companies…

 

‘1MDB can sue IPIC’

He also noted that IPIC and 1MDB will hold further negotiations on the payments 1MDB had made to “certain entities” to find a common resolution on how to foot the US$3.5 billion principal payments on the bonds which will mature on 2022.

“If there is no resolution between IPIC and 1MDB, 1MDB has the right to take legal action against IPIC on the payment of US$2.5 billion it made to Aabar BVI, before the bonds mature in 2022,” he said

……

Finance Minister II Johari Abdul Ghani has disclosed the existence of a letter confirming that Aabar Investments PJS Ltd (BVI) is a subsidiary of International Petroleum Investment Company (IPIC) even though the Abu Dhabi firm denies this.

“As far as I am concerned, based on records provided by 1MDB to the Public Accounts Committee (PAC) prior to the settlement agreement, Aabar Investments PJS Ltd (BVI) is a subsidiary of IPIC.

“A fact which was confirmed by the Registrar of Corporate Affairs of the British Virgin Islands by its letter dated Aug 11, 2016,” he told Malaysiakini.

The minister’s disclosure led a source familiar with the issue to question why the Malaysian team chose to opt for a settlement, when it had such strong evidence.

Our comment

In an astonishing development and within only 24 hours of the joint IPIC/ 1MDB announcement of an ‘amicable settlement’ being registered on the London Stock Exchange, two of Najib’s closest ministers have backtracked on the essentials of that agreement!

Except, nothing is any longer surprising in Malaysia, where ministers are running round like headless chickens trying to defend the indefensible over the thefts from 1MDB.

It has been internationally recognised that the settlement as announced represented a total cave-in by 1MDB and an effective admission that no money was ever paid by Malaysia to Abu Dhabi. After all, the terms of the settlement will be that Malaysia pays back the $1.2 billion bail out of 1MDB made last year and will take over all the remaining payments on the $3.5 billion it borrowed back in 2012.

This was despite previous, unsubstantiated claimes that 1MDB had paid IPIC $3.51 billion in supposed deposits for a guarantee on those borrowings. It is now clearly demonstrated how in fact that money was stolen by conspirators linked to Najib Razak’s proxy at 1MDB Jho Low (the conspirators included the Head of IPIC at the time, who is now jailed).

However, Najib’s monkey ministers, who don’t like being shown up are now sounding off that IPIC did get the money and still owes $2.5 billion after all!  They claim documents (which they still have not substantiated) prove their point. And now they are suggesting that Malaysia is going to tear up the agreement and SUE ABU DHABI!

Malaysia needs to rid of itself of these embarrassing representatives!

Sign-up to receive regular updates from Sarawak Report

We send out the latest story at 7am Malaysia time

Your views are valuable to us, but Sarawak Report kindly requests that comments be deposited in suitable language and do not support racism or violence or we will be forced to withdraw them from the site.

Comments

comments