Malaysia’s 1MDB fund, which is the subject of investigations in six countries, and is of great concern to the ruling political leaders of the Southeast Asian nation, found it harder to deal with the Abu Dhabi sovereign-wealth fund International Petroleum Investment Co, over claims of lost billions.
IPIC said 1MDB owes it some US$6.5 billion, claims virulently denied by 1MDB’s chief Arul Kanda.
The situation between the two parties worsened after Malaysia defaulted on bonds guaranteed by IPIC. 1MDB may well have washed its hands off the claims, but when Malaysia refused to pay back an emergency loan IPIC gave 1MDB in July 2015, things soured.
Now, they are not talking anymore, said the Wall Street Journal today.
“Abu Dhabi and Malaysia nearly reached a deal in December in which Malaysia’s government would immediately pay $1.2 billion as a first step to resolving the overall dispute, but Malaysia pulled out because advisers to the prime minister were dissatisfied with the agreement, according to the people familiar with the matter. Abu Dhabi expects to take the dispute, which has damaged the once close relationship between the countries, to arbitration, the people said,” wsj.com said.
Contrary to its former strategy, the 1MDB media team has not offered any response to the WSJ claims that talks between them and IPIC broke down and no solutions are in view to resolve the billion dollar missing claims.
1MDB said it sent the money to IPIC, but IPIC later said they never received the money. The 1MDB also said they now believe they were cheated of the money, which was apparently fuelled into the accounts of an obscure entity that sounds similar to IPIC.
JHO LO wins back NZ property
The Malaysian taicoon embroiled in the 1MDB issue, Jho Low, is said to have won back his family’s NZ trusts owning jet and property worth $265 million.
An Financial Times report said today the family fought back against the US Department of Justice (DOJ) efforts to seize Jho Lo’s assets in New Zealand.
Among the assets owned by the Low family’s trusts include, the Viceroy L’Ermitage Hotel in Beverly Hills, a Los Angeles villa, a penthouse apartment in New York and a Bombardier private jet, according to the DOJ.
The case is not over yet, but for now the Jho Lo family can have access to their assets in NZ, the report said.
“The complex network of New Zealand foreign trusts used by Low Taek Jho and his family to hold assets linked to the 1MDB scandal has refocused attention on the country’s role as a haven for the wealthy to park assets,” said the Financial Times.