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Two Abu Dhabi state funds caught up in 1MDB financial fraud have reached a $1.8 billion settlement with the Malaysian sovereign fund and the finance ministry to end a legal dispute in London.
Under the terms of the agreement announced on Monday, the International Petroleum Investment Corporation (Ipic) and Aabar will pay the agreed amount in three stages: $800 million within seven days of the termination of the London proceedings and the remainder over two years. Abu Dhabi company executives are accused of helping loot billions of dollars from Malaysian funds.
In 2018, Malaysia filed a lawsuit challenging a settlement with the United Arab Emirates capital a year earlier, while Najib Razak, the former prime minister at the heart of the 1MDB scandal, was still in office.
The 1MDB scandal, which siphoned billions of dollars from the Malaysian sovereign fund, reverberated around the world, leading to the ouster of Najib and a string of cases including be opposed to Goldman Sachs.
Najib was sentenced to 12 years in prison in 2020 after the Kuala Lumpur High Court found him guilty of seven charges, including money laundering and abuse of power, in a high-profile case related to 1MDB embezzlement.the verdict is persist in It was heard by the Supreme Court last year.
In London, Malaysia argued that the original Abu Dhabi settlement was struck to cover up Najib’s “fraud and dishonesty”.
The settlement brings an end to a long-running dispute over 1MDB that Malaysia initiated five years ago.
The scandal embarrassed Abu Dhabi, which announced in 2016 that it would merge Ipic and Aabar into another state investment firm, Mubadala. Mubadala declined to comment.
Two senior executives of Ipic and Aabar, Khadem al-Qubaisi and Mohammed al-Husseiny, were convicted and jailed in Abu Dhabi for their involvement in the fraud.
“Through this settlement, Malaysia and Abu Dhabi look forward to continuing to work together in the future to serve the prosperity and economic interests of both countries,” Malaysia’s Ministry of Finance said.
International Trade and Industry Minister Zarful Aziz, who is leading the negotiations, said in a tweet: “The close relationship between the YDPA [the king of Malaysia] The UAE President is also an important factor in ensuring the success of the negotiations. “
The deal comes days after the premier Anwar Ibrahimwhich voted to power in November, delivered a record RM388 billion budget.
Anwar, who also holds the post of finance minister, took over an economy still reeling from the 1MDB scandal.
One of his biggest challenges is restoring Malaysia’s international reputation after a long corruption scandal. The fund remains the subject of corruption and money laundering investigations in multiple countries.
Anwar is also pressuring U.S. investment bank Goldman Sachs to pay the government a settlement over its role in the scandal.
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