Tan Siok Choo
Making Sens
The Sun Daily
20 April 2016
“CURIOUSER and curiouser,” said Alice as she grew to more than nine feet high in Lewis Carroll’s fabled novel Alice’s Adventures in Wonderland.
This is the likely response of non-partisan readers of often contradictory articles about 1Malaysia Development Berhad (IMDB), the report by the Public Accounts Committee (PAC) and strongly-worded statements by Abu Dhabi’s sovereign wealth fund, International Petroleum Investment Company (IPIC).
In a joint announcement on April 11, IPIC and its subsidiary Aabar Investments PJS (Aabar) categorically denied Aabar Investments PJS Ltd, established in the British Virgin Islands (Aabar BVI), is “an entity within either corporate group”. Both IPIC and Aabar also said they had received no payments from Aabar BVI.
In response, 1MDB said it was “curious” IPIC and Aabar had waited “until April 2016” to issue a denial and was surprised “neither IPIC nor Aabar has knowledge of, nor has benefited from, payments made by IMDB to Aabar BVI.”
Under a debt-asset swap agreement on May 28, 2015 involving Aabar, Malaysia’s Ministry of Finance (MOF) and 1MDB, IPIC agreed to:
» provide US$1 billion to enable 1MDB to settle its liabilities;
» pay interest on the US$3.5 billion bonds;
» repay the US$3.5 billion bond; and
» forgive certain 1MDB debts.
In return, 1MDB would transfer to IPIC by June 30, 2016 assets with an aggregate value of all the sums paid by IPIC.
DAP MP Tony Pua says the value of assets 1MDB must transfer to IPIC total US$4.7 billion – US$1 billion to settle 1MDB’s liabilities, US$3.5 billion for the 2012 bonds and up to US$200 million in interest payments. Continue reading “1MDB – A wonderland saga”