July 1, 2022

The ‘Stolen Money’ mentioned by US Justice Dept belongs to IPIC and not 1MDB, says blogger [Guarantee Deed by Cayman Islands fund]

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aabarFrom Malaysian Digest

In its widely publicized move to seize assets believed to be bought using funds which the US Department of Justice (DoJ) says is stolen from 1MDB, a point of contention has arisen as 1MDB says it is not aware of any money stolen from its coffers.

“The US Department of Justice (DOJ) had alleged that billions were stolen from 1MDB and initiated asset seizures to recover this but 1MDB insist that it had not lost any money and that all its assets are accounted for,” blogger Lim Sian See (LSS) highlighted the difference in factual representation in limsiansee.blogspot.my

LSS said 1MDB could not lay claim to the money, which the US Justice Department said had been embezzled and paid to Penang-born financier Jho Low, motion-picture production firm Red Granite Pictures and Abu Dhabi businessman Khadem Abdullah al-Qubaisi and proceeded to outline the actual money trail in the blog posting.

Alleged source of funds 1: Good Star, as part of the PetroSaudi-1MDB Joint Venture.

What did 1MDB pay:
USD1.83 billion of which USD1.03 billion was transferred to Good Star and USD800 million to PetroSaudi. The ownership and the responsibility of the funds in question had changed when 1MDB paid the money as per the agreements

What happened to the money:
JV was converted to a loan. Loan was repaid by PetroSaudi to 1MDB via USD2.32 billion worth of investment units (Principle + interest/dividends).

What happened to the investment units?
USD1.4 billion was redeemed and used for 1MDB working capital purposes with remaining USD940 million in investment units.

LSS referred to the Deed of Capital Guarantee where Aabar Investments PJS of the Abu Dhabi explicitly guarantees all the value of the fund units of the Cayman funds run by Bridge Capital.

This also means that it is simply not legally possible for any of 1MDB money to be “stolen” by Good Star/PetroSaudi as 1MDB got back all their money plus a decent profit from the PetroSaudi JV, the blogger asserts.

“If this document is genuine that means that 1MDB’s chances in the arbitration with IPIC is much stronger.

“Somehow Tony Pua never told us about this document and that the Cayman units were indeed not worthless.

“Strangely, the DOJ also did not tell us about this – perhaps because Tony didn’t tell them?

“This is a significant document and I am surprised that the US DOJ did not highlight this document or perhaps they are not aware of this document during their investigation since they did not bother to meet up with the Abu Dhabi or Malaysian Govt when they did their investigations,” LSS highlights in a recent Facebook posting.

The blogger points out that “1MDB would need to focus on winning its arbitration case by proving that the two senior executives of Aabar and IPIC had acted with full authority of the board and that all checks had shown that Aabar-BVI had legally belonged to both entities”.

If 1MDB won the IPIC arbitration case and also prove that it redeemed the US$1.5 billion GIL funds, then it could truly say that none of its money was missing or stolen, the blogger concluded.

For more on this story go to: http://malaysiandigest.com/frontpage/29-4-tile/623171-the-stolen-money-mentioned-by-us-justice-dept-belongs-to-ipic-and-not-1mdb-says-blogger.html

See iNews Cayman related stories:

Published July 17 2016 “Pua: Will new 1MDB board act on new exposé?” with link to others at: https://www.ieyenews.com/wordpress/pua-will-new-1mdb-board-act-on-new-expose/

Published July 20 2016 under iNews Briefs “Malaysia 1MDB investigation: US seeks to seize $1bn in assets” at: https://www.ieyenews.com/wordpress/inews-briefs-community-events-71/

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