By Malaysiakini
All funds by fully government-owned firm 1Malaysia Development Bhd (1MDB) invested into a joint venture with PetroSaudi International in 2009 were channelled into PetroSaudi entities, the Saudi Arabian oil company said.
Its statement comes after Sarawak Report and London’s Sunday Times published an expose alleging that 1MDB banked in US$700 million (RM2.5 billion) of the funds for the joint venture into a company linked to controversial money man Jho Low.
“PetroSaudi stated categorically that funds from 1MDB went to PetroSaudi-owned entities and any other inference is false,” Bernama reported today.
The oil company in a statement also said certain media reports had also made “malicious and harmful allegations” against it.
“Upon 1MDB’s exit, PetroSaudi had paid 1MDB in full and both parties no longer have any financial or legal relationship,” the newswire quoted the oil company as saying.
PetroSaudi was founded by its CEO Tarek Obaid and is chaired by Prince Turki al-Saud, the son of the late King Abdullah of Saudi Arabia.
Sarawak Report cited leaked emails from Low, his associate Li Lin Seet, PetroSaudi official Patrick Mahony and then 1MDB CEO Shahrol Halmi.
The correspondence showed that US$700 of the US$1 billion 1MDB invested in the venture was banked in to a company called Good Star, linked to Low.
Contacted today, 1MDB reiterated that it had recovered the entire sum of its investment, including a US$488 million profit.
Malaysiakini has contacted Low’s public relations representative for a response.
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