Najib Tun Razak and Rosmah RAYA GIFT to MALAYSIANS

THE Malaysian Finance Ministry and its wholly owned sovereign wealth fund 1MDB will have to settle its USD$6.5 billion commitment with International Petroleum Investment Company (IPIC) at the London Court for International Arbitration (LCIA) by July 11 or face bankruptcy.

The dateline was fixed by LCIA following filing of the case by IPIC and its subsidiary Aabar Investments on June 13 in a case that involves a long-running dispute between the Abu Dhabi based company and 1MDB,
Four years ago, IPIC guaranteed $3.5bn of 1MDB bonds but claims it has not received payment for the guarantee or other monies and interest owed.

In a filing with the London Stock Exchange last month, IPIC said it had to make good on its guarantee – the third default by 1MDB – with an interest payment of more than $52 million.
IPIC also said that it would demand 1MDB and the Malaysia’s ministry of finance, which owns the fund, make good on an amount owed under the terms of a deal last year in which IPIC agreed to extend additional support to 1MDB, including covering $1bn of interest payments due, in return for commitments by Malaysia to acknowledge its liabilities and make payments.

The claim filed with the LCIA implies the two parties have failed to reach a negotiated settlement.
The dispute between IPIC and the Malaysian Government is further complicated by investigations into 1MDB in at least seven jurisdictions, including its home country, Switzerland and the United States.

In April, IPIC said that payments which 1MDB claims were made as part of last year’s deal were never received and that it had no association with an entity called Aabar BVI (British Virgin Islands), where the money was allegedly sent.
PM Najib has publicly denied claims that nearly $700m of 1MDB funds meant for IPIC was siphoned into accounts he controlled.