1MDB directors who quit over ‘diverted money’
Report says US$700mil meant for PetroSaudi joint venture went elsewhere
KUALA LUMPUR: The chairman of 1MDB, Mohd Bakke Salleh, and company director Azlan Mohd Zainol resigned in 2009 because money meant for a joint venture went to another company, according to a news report.
They had resigned in protest after US$700 million (RM2.6 billion) intended for a joint venture with PetroSaudi was paid to another company without their approval, according to the Star, quoting unnamed investigators into the affairs of the troubled government investment company.
The report said Mohd Bakke and Azlan Mohd Zainol were upset that they were ignored when they demanded the return of the money.
The joint venture agreement had also been signed without much consideration, according to the investigators.
Last week, media reports said US$700 million had been deposited into AmBank private banking accounts in the name of Najib Razak, the Prime Minister. Other reports have also traced the movement of the sum of US$700 million, linking it to a company owned by Penang-born businessman Jho Low.
1Malaysia Development Bhd is owned by the finance ministry under Najib, who is also chairman of the 1MDB board of advisers.
A government investigation into the affairs of the company is being carried out by a task force comprising the Attorney-General’s Chambers, MACC, the police, and Bank Negara.
The Star report, quoting unnamed investigators, said a 1MDB-PetroSaudi joint venture company had borrowed US$700 million from another PetroSaudi company without the knowledge of the 1MDB board and had been formalised three days before the joint venture formally came into existence.
Only US$300 million of a US$1 billion investment approved by the board was paid into the joint venture company 1MDB-PetroSaudi, while the remainder was made as a repayment for a US$700 million loan taken just five days before.
The Star said the 1MDB board had reservations about the joint venture as they were unclear of their partners’ assets. However, 1MDB later extended a total of US$800 million to the joint venture company. The joint venture was later aborted.
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