1MDB sent US$850 million to entity made to appear owned by UAE firm, says WSJ

In the latest turn of events involving state-owned firm 1Malaysia Development Berhad (1MDB), The Wall Street Journal (WSJ) reported today that a 1MDB unit had sent at least US$850 million (RM3.7 billion) to an offshore entity made to appear controlled by Abu Dhabi’s International Petroleum Investment Co (Ipic).

Citing wire transfer documents, the paper said 1MDB had transferred the money to a British Virgin Islands-registered company called “Aabar Investments PJS Ltd”, which closely resembles the name of Ipic’s wholly owned subsidiary, Aabar Investments PJS.

Quoting people familiar with the matter, the WSJ report said the money had been transferred via three transactions last year, although executives at Ipic and Aabar said neither of the two funds had ever owned or controlled the British Virgin Islands company.

WSJ said records showed that the British Virgin Islands firm had been incorporated on March 14, 2012 and liquidated on June 23, 2015. 1MDB, established in 2009, sits on a RM45 billion debt and is also tied to allegations that some RM2.6 billion was transferred into Prime Minister Datuk Seri Najib Razak’s personal accounts just before the general election in March 2013.

Najib has denied the allegations and threatened legal action against WSJ, which published the expose on July 2. The prime minister has also hit out at his critics. Najib, who is also chairman of the firm’s advisory board, said the RM2.6 billion had been a political donation from an unnamed Middle Eastern benefactor.

1MDB is currently under investigation in at least six countries. The Malaysian Anti-Corruption Commission said the investigations were ongoing and results could not be summarily disclosed. – December 17, 2015.

Source : http://www.themalaysianinsider.com/malaysia/article/1mdb-sent-us850-million-to-entity-made-to-appear-owned-by-uae-firm-says-wsj#sthash.1mPtFT83.dpuf

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