By KINIBIZ
Strategic development company 1Malaysia Development Berhad (1MDB) said that its US$1.4 billion in payments to a Middle Eastern partner are in order as stated in their audited financial statements after a report by the Wall Street Journal (WSJ) alleged the payments were not received.
Citing sources, WSJ’s reported today that neither International Petroleum Investment Company (IPIC), the state investment vehicle of the United Arab Emirates (UAE), nor its subsidiary Aabar Investments PJS had received the US$1.4 billion collateral payment promised to it by 1MDB.
The WSJ report further stated that IPIC’s consolidated financial statements did not have a record the transaction.
In a media statement today, 1MDB confirmed that based on the payments made “…IPIC did provide and continues to provide, guarantees for the principal and interest of 2 x US$1.75 billion bonds issued by 1MDB, with a total principal and interest amount of approximately US$5.5 billion.”
Concerning that report that IPIC never received the US$1.4 billion, 1MDB said that it “cannot speak on behalf of Aabar or IPIC nor can we comment on the accounting arrangements of third parties.”
The company said that the details of the US$1.4 payment have been disclosed to auditors Deloitte prior to them signing off on financial statements.
1MDB expressed its regrets that WSJ “does not name its source or provide any proof of the unproven allegations it is making, thereby seriously discrediting its sensationalist story.”
Furthermore more, the company said that WSJ is making use of confidential information available only to the Public Accounts Committee and as such is potential breach of the law. 1MDB stated that it strongly urges the relevant authorities to investigate this matter thoroughly and take all necessary actions.
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