While the Management insisted that Good Star Limited was a subsidiary of Petrosaudi International, no evidence was presented by 1MDB from the relevant authorities to the AG or the PAC to prove such claims. The AG’s Report also confirmed that besides the original US$700 million transferred in 2009, 1MDB further transferred an additional US$330 million to Good Star in 2011.
The AG and PAC have also been able to establish multiple questionable transactions between 1MDB and Aabar Investment PJS Limited, which is established in the British Virgin Islands “Aabar (BVI)”. It has been previously reported that Aabar (BVI) was granted 49% options to acquire 2 power companies, Tanjong Power and Genting Sanyen, in exchange for International Petroleum Investment Corporation (IPIC) providing a US$3.5 billion guarantee for 1MDB bonds issud in 2012. These options were terminated in 2014.
Based on the Option Termination agreement sighted by the AG, 1MDB was to compensate Aabar with a “refundable deposit” of US$300 million. However, 1MDB reported that it has paid US$993 million to Aabar (BVI). (7.3.10)
Worse, the AG and the PAC has also been informed that besides the above, 1MDB paid Aabar (BVI) further sums of US$855 million and US$295 million as unexplained “top-up security deposits”. (7.3.13)
Under the original “Credit Enhancement Agreement” signed in 2012, 1MDB has already paid Aabar (BVI) US$1.367 billion. (7.3.9)
Hence, in total, 1MDB has paid US$3.51 billion to Aabar (BVI) for “security deposits” and “option termination” apparently for the US$3.5 billion bond guarantee provided by IPIC!
What is damning is the fact that 1MDB could not provide any concrete documentary evidence that Aabar (BVI) is in anyway related to Aabar Investment PJS of Abu Dhabi, which is the susbsidiary of IPIC.
While Finance Minister attempts to blame everyone else and his dog, let us just focus on what the PAC report established about money that 1MDB has refused to account for (since it won’t produce its bank statements to them or the Auditor General).
The sum from 1MDB alone (so far) is USD$4.5 billion.
This money went partly to Good Star Limited, which 1MDB has failed to prove had any link to the PetroSaudi JV, where it was supposed to have been invested.
And partly to Aabar Investments PJS Limited (BVI), which 1MDB has failed to prove had any link to the Aabar sovereign wealth fund, where it was supposed to have been sent.
In fact both these companies were controlled by co-conspirators of the Prime Minister, Jho Low and Khadem Al Qubaisi.
We now know the Finance Minister raised US$3.5 billion in two ‘power purchase’ loans in 2012, for which he ended up paying US$3.51 billion up front to the bogus Aabar!
Is this man safe in charge of Malaysia’s money?