DAP today denounced Putrajaya’s “opaque and cryptic” explanations for 1MDB’s failure yesterday to pay Abu Dhabi’s International Petroleum Investment Company (IPIC) the US$600 million (RM2.6 billion) owed to the sovereign fund.

Prime Minister Najib Razak had yesterday said that the payment had been delayed by “technical” problems.

DAP National publicity secretary Tony Pua said no one, after listening to the explanation, would have a clue as to why exactly there was difficulty in processing the transactions to pay IPIC.

“The reason for the opacity and secrecy is simple.  There is no bank in the world today who is willing to process the sale of the 1MDB-owned investment fund units’,” said Pua  

“This is because the United States Department of Justice have stated that these ‘units’ were fraudulent. They were created to cover-up the more than US$1 billion which were misappropriated by 1MDB to Good Star Limited when the intent was to have invested with Petrosaudi International Limited,” said Pua.

At the conclusion of private arbitration in London, whereby 1MDB had agreed to pay US$1.2 billion to IPIC in two tranches by the end of the year, 1MDB had disclosed that these obligations will be met “primarily via monetisation of 1MDB-owned investment fund units”.

“Any bank, Malaysian or international, which facilitates the transaction involving the sale of these fraudulent investment ‘units’ by 1MDB to whoever or whichever party would hence be guilty of facilitating money laundering,” said Pua in a media statement today.

Pua said BSI Bank had its merchant banking licence revoked by Singapore authorities because it was the “custodian bank” for the 1MDB investment uni.

Switzerland’s financial regulator, Finma, also demanded that the 132-year-old Swiss private bank dissolved its Singapore branch, he said.

“No bank worth its salt would want to experience and endure the same fate as BSI Bank or many other Banks which have been fined and punished as a result of their entanglement with 1MDB,” said Pua.

He said the only way for 1MDB to repay IPIC was via the government’s coffers.

“However, if that were to happen, it would be a direct admission by the government that 1MDB is carrying fraudulent investments and billions of dollars have been lost and stolen from the company. 

“We call upon Dato’ Seri Najib Razak to explain himself and tell the full truth to the millions of Malaysians who are gravely concerned with the RM50 billion 1MDB scandal.

“If there is ‘nothing to hide’ and what we have stated above is in any way without basis as the BN leaders often claim, then come to Parliament, answer questions and debate openly.” – August 3, 2017.