FORMER deputy prime minister Muhyiddin Yassin has a problem with the settlement between International Petroleum Investment Company (IPIC) and 1Malaysia Development Bhd (1MDB) of a dispute involving billions of ringgit.
 
“The settlement reached between IPIC and 1MDB proves that there were elements of fraud where 1MDB had wrongly paid Aabar BVI instead of IPIC unit, Aabar Investments PJS,” said Muhyiddin on his Facebook page today.
 
Aabar BVI is a fake company with a name similar to the IPIC subsidiary’s, said the Parti Pribumi Bersatu Malaysia president.
 
Muhyiddin said the settlement in which 1MDB and Ministry of Finance Inc (MoF) agreed to repay everything proved that IPIC was right all along in insisting that it had never been paid.
 
IPIC and 1MDB announced on Monday that they had reached a settlement under the rules of arbitration. Under the terms of the settlement, IPIC will receive US$602,725,000 (RM2.6 billion) by July 31 and another US$602,725,000 by Dec 31.
 
1MDB and MoF also assumed responsibility for all future interest and principal payments under the two bonds issued by the 1MDB Group companies that were guaranteed by 1MDB and IPIC.

One bond is for US$1.75 billion at a fixed rate of 5.75% issued by 1MDB Energy (Langat) Limited, and the other is for US$1.75 billion at a fixed rate of 5.99% issued by 1MDB Energy Limited, according to the statement. Both bonds are due in 2022.
 
“Why did 1MDB pay such a huge sum to a fake company? And why has there been no action taken against anyone for making this wrongful payment?

“Or was the payment to a fake Aabar planned all along?” said Muhyiddin.
 
The real problem now, Muhyiddin said, was how 1MDB and MoF intended to pay IPIC.  – April 26, 2017.