From The Straits Times

Dispute between Abu Dhabi sovereign fund and Malaysian state firm takes another turn

ABU DHABI • A sovereign fund in Abu Dhabi embroiled in a debt dispute with 1Malaysia Development Bhd (1MDB) has said it did not guarantee any of the Malaysian state company’s holdings in a Cayman fund, stirring up more questions on investments that amounted to billions of dollars.

International Petroleum Investment Co (Ipic) is also investigating companies set up outside its group structure and in other jurisdictions that used variations of the name of its Aabar Investments PJS unit, it said in an exchange filing on Thursday. It had earlier denied ownership of a company known as Aabar BVI, to which 1MDB said it sent US$3.5 billion (S$4.7 billion).

Ipic did not say if the other entities using Aabar’s name were also related to 1MDB.

1MDB is at the centre of probes at home and abroad, including in Switzerland, the United States and Singapore as the authorities seek to determine if some of the billions of dollars it raised were siphoned off. While it has denied wrongdoing, a report by a Malaysian parliamentary committee in April identified at least US$4.2 billion of questionable transactions, including those involving Abu Dhabi companies.

Investigators are faced with a complex web of transactions, some of which involve companies with similar names.

1MDB has “intimated the existence of guarantees” of about US$940 million provided by Aabar for units in a Cayman-registered fund owned by 1MDB unit Brazen Sky, and guarantees from Aabar BVI of investments held with various third-party fund managers of about US$1.5 billion, Ipic said in a statement on Thursday.

In September 2012, 1MDB sold its shares in a venture for US$2.32 billion and received units in a Cayman-registered fund managed by Bridge Partners, a Hong Kong- based fund manager.

1MDB said the units were owned by Brazen Sky, and held through Swiss bank BSI’s unit in Singapore as custodian. Transcripts of a parliamentary committee probe of 1MDB show lawmakers were told by its auditor of an investment guarantee by Aabar.

“Both Ipic and Aabar confirm there is no record of any such guarantees being provided by Aabar,” Ipic said. “Neither Ipic nor Aabar has received any payments, assets or fund units from Brazen Sky.”

1MDB declined to comment on the Ipic statement. It has said it negotiated “various legal agreements” with the previous heads of Ipic and Aabar, and called it a “surprising claim” that neither Gulf company knew of its dealings with Aabar .

Ipic entered into an agreement with 1MDB in 2015 to provide the Malaysian fund with US$1 billion to settle liabilities in exchange for a transfer of assets, and assume interest obligations on US$3.5 billion of debt. The tussle between the two spilled over to repayments on bonds issued by 1MDB, which led to a default in April.

BLOOMBERG

IMAGE: 1MDB is at the centre of probes at home and abroad, including in Switzerland, the US and Singapore as the authorities seek to determine if some of the billions of dollars it raised were siphoned off. It has denied wrongdoing. PHOTO: REUTERS

For more on this story go to: http://www.straitstimes.com/business/ipic-denies-guaranteeing-1mdbs-cayman-investments

Related story:

Confirmed – the money was stolen: ‘just units’ Husni feels Najib’s Cayman fire

From Malaysia Chronicle

Well Husni is not going for the Umrah like Wahid. Instead he is off to Jordan for three months to study Arabic and the Quran.

Well let me say up front that you are wasting your money. You can learn more arabic and the Quran right here in Malaysia. Its better to go to Italy. More things to see and learn.

But Husni is actually running away. Too much heat now. Ramadhan means intensity, intense heat. Husni is feeling his ‘ramadhan’ now.

“After 2 years of failed public relations exercise, Husni is now the new spokesperson on all 1MDB issues” – JMD@JebatMustDie

Husni Hanadzlah plans to learn Arabic.

According to Sinar Harian Husni to leave for Jordan

“I planned to go for three months to learn Arabic and Quran

He did not comment on reasons for sudden resignations from his posts.

For more on this story go to: http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=617178:confirmed-the-money-was-stolen-just-units-husni-feels-najibs-cayman-fire&Itemid=2#ixzz4DGxLQneS

See also related iNews Cayman story with links to others published May 29 2016 “Whatever happened to 1MDB’s Cayman Islands funds?” at: http://www.ieyenews.com/wordpress/whatever-happened-to-1mdbs-cayman-islands-funds/