1MDB denies US$1.4b missing, slams WSJ

PETALING JAYA: 1Malaysia Development Berhad (1MDB) today refuted an article by The Wall Street Journal (WSJ) which alleged that a US$1.4 billion (RM6.02 billion) payment from 1MDB to one of its subsidiaries was missing.
"What we can confirm is that the 1MDB audited financial statements clearly describe the amount and purpose of the payments, which for the avoidance of doubt, is structured as a deposit (i.e. a financial asset belonging to 1MDB and not an expense to 1MDB)," it said in a statement today.
WSJ had published an article alleging that International Petroleum Investment Co (IPIC), a United Arab Emirates state investment vehicle, had guaranteed the US$3.5 billion in bonds that 1MDB issued to finance the purchase of power plants in 2012.
In return, IPIC had the option to buy a 49% stake in the power plants as well as collateral for the bond.
According to the auditor-general's draft report, 1MDB made a collateral payment of US$1.4 billion which went to Aabar Investments PJS, a subsidiary of IPIC, said WSJ in its report highlighting the missing money.
IPIC's consolidated financial statements, however, show no reference to the receipt of the payment.
Quoting sources, WSJ said neither IPIC nor Aabar received the money and have no knowledge where the funds have gone.
1MDB quoted the Standing Orders of the Dewan Rakyat which states that "the evidence taken before any Select Committee and any documents presented to such Committee shall not be published by any member of such Committee, or by any other person, before the Committee has presented its Report to the House".
"The actions by Wall Street Journal are a potential breach of Malaysian law by a supposedly respectable foreign publication. We are further concerned as to who involved in the PAC (Public Accounts Committee) hearings may have leaked this transcript, which is clearly an attempt to prejudice the PAC investigations and deny 1MDB its right to due process as provided for by the laws of Malaysia."
It urged the authorities to investigate the matter thoroughly and take all requisite action to preserve the process integrity and Standing Orders of the Malaysian Parliament.