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Abu Dhabi’s IPIC, Aabar to pay Malaysia $1.8bn to settle 1MDB dispute

Abu Dhabi’s IPIC, Aabar to pay Malaysia .8bn to settle 1MDB dispute

KUALA LUMPUR, Feb 27 (Reuters) – Abu Dhabi’s International Petroleum Investment Company (IPIC) and its unit Aabar Investments PJS have agreed to pay $1.8 billion to legally settle the 1MDB scandal at Malaysia’s state fund, Malaysia’s finance ministry said on Monday. dispute.

Malaysia challenged a London court in 2018 against the settlement between 1MDB and IPIC, negotiated a year earlier under former leader Najib Razak’s tenure as prime minister.

Najib was jailed for 12 years last year after being found guilty in a corruption case linked to 1MDB.

In its challenge, Malaysia argued that the 2017 settlement was obtained by fraud.

The Abu Dhabi company, 1MDB and Malaysia’s Finance Minister Berhad have reached a settlement in the proceedings at the London Court of International Arbitration and the London High Court, the finance ministry said on Monday.

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“Through this reconciliation, Malaysia and Abu Dhabi look forward to continuing to work for the prosperity and economic interests of both countries in the future,” the ministry said in a statement.

London-based IPIC and Aabar law firm Clifford Chance LLP said in a statement that the companies had agreed to pay the settlement in three stages: $800 million to be paid within seven days of the conclusion of the London proceedings, and the remainder to be paid within 2 months. Days payable within year of termination.

Malaysia’s 1MDB is the subject of corruption and money laundering investigations in at least six countries.

Between 2009 and 2014, senior officials of the fund and their associates misappropriated about $4.5 billion from 1MDB, the Justice Department said.

Reporting by Rozanna Latiff; Additional reporting by Hadeel Al Sayegh in Dubai; Editing by Ed Davies and Kanupriya Kapoor

Our standards: Thomson Reuters Trust Principles.

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