1MDB confident of legal position on payments to Aabar BVI

PETALING JAYA: 1Malaysia Development Bhd (1MDB) is confident of its legal position in relation to the US$3.5 billion cash deposits paid to British Virgin Islands-incorporated Aabar Investments PJS Ltd (Aabar BVI) following International Petroleum Investment Company’s (IPIC) denial of its ownership of Aabar BVI.
“In this regard, the company will pursue all available avenues open to it,” 1MDB said in a statement yesterday.
The state-owned fund said it is committed to fully cooperating with the police in their investigations following the Public Accounts Committee’s recommendation.
“The company has always maintained and continues to maintain that if any wrongdoing is found, then action must be taken, according to the law,” it noted.
1MDB said it has shared all documents in its possession, and those it could obtain, with the National Audit Department and that the documents show the ownership of, payments to, and underlying legal documents relating to Aabar BVI. Thus, it added, there are no “lies” or suppression of information.
“Where relevant, substantial reasons were given for each omission,” it said.
The relevant payments were made between 2012 and 2014, whereby references to these payments are publicly available in its audited financial statements ended March 31, 2013 and 2014, stressed 1MDB.
“For an as yet to be determined reason, IPIC and Aabar are only now seeking to deny ownership of Aabar BVI or receipt of the payments. This will no doubt be the subject matter of further enquiry and discussion. 1MDB is exploring all its options in this regard,” it said.
In another development, the Attorney General of Switzerland yesterday announced that as part of criminal proceedings on suspicion of embezzlement committed against 1MDB, it has extended its proceedings to two former Emirati officials in charge of Abu Dhabi sovereign funds.
The Swiss authority said it has elements in hand to suspect that the amounts paid as guarantee for two series of bonds issued by 1MDB subsidiaries to finance investments in power plants, were not returned to the Abu Dhabi sovereign fund that supported the commercial risk.
The funds instead are thought to have benefited others, particularly two public officials concerned, as well as a company related to the motion picture industry. A former 1MDB body already indicted in Swiss proceedings also benefited.
Two requests for mutual legal assistance have also been sent to Luxembourg and Singapore.