Despite the corruption allegations swirling over 1Malaysia Development Bhd (1MDB), the sovereign wealth has paid in full the US$1.2 billion it owed to Abu Dhabi’s state-owned International Petroleum Investment Co (IPIC), reported Reuters and Free Malaysia Today.
Previously, 1MDB agreed to pay US$1.2 billion in two instalments to IPIC by 31 July and 31 December, as part of a settlement mediated by the London Court of International Arbitration (LCIA) after the former defaulted on its bond payments totalling about US$6.5 billion.
While 1MDB missed the deadline for the first payment of US$600 million as it needed to obtain “regulatory approvals” and made the late payment in August, it was able to fulfil the second payment of another of US$600 million ahead of the year-end deadline.
“IPIC has now received all the funds required to be paid to IPIC by 31 December under the Settlement with the Minister of Finance (Inc) Malaysia and 1MDB and the Consent Award made on 9 May 2017,” said IPIC in a filing with the London Stock Exchange on Wednesday (27 December).
At least six countries are currently investigating 1MDB due to money-laundering charges, including Switzerland, the US, and Malaysia’s neighbour Singapore. In fact, the Justice Department of the United States have alleged that around US$4.5 billion was plundered from 1MDB.
The US authorities contend that part of the money was used by Prime Minister Najib Razak’s stepson Riza Aziz for the production of Hollywood films like Leonardo DiCaprio’s “The Wolf of Wall Street”.
A portion was also utilised to fund 85 percent of the US$654 million acquisition of The Park Lane, a 46-storey luxury hotel in New York, by Aziz’s close friend, Malaysian businessman Low Taek Jho.
Furthermore, a part was allegedly used to buy to purchase a 22-carat pink diamond pendant and necklace worth US$27.3 million for Najib’s wife Rosmah Mansor.
However, Najib has denied all allegations that he was involved in embezzling billions from 1MDB, despite the fact that he founded the sovereign wealth fund.
Image sourced from Mole.
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