The Malaysian government will ask the UK courts to affirm that it does not have to pay a US$4.32 billion sum to IPIC or Aaabar becase 1MDB was defrauded

AG says Malaysia doesn’t have to pay US$4.32b to IPIC as 1MDB defrauded


Published  on 30 October 2018

By Ida Lim
Thomas said Malaysia also has a right to recover the US$1.46 billion already paid to IPIC. ― Picture by Hari Anggara

KUALA LUMPUR, Oct 30 — The Malaysian government will ask the UK courts to affirm that the country does not have to pay a US$4.32 billion sum to Abu Dhabi’s International Petroleum Investment Company or Aabar Investments PJS because 1Malaysia Development Berhad (1MDB) was defrauded, Tommy Thomas said today.

The attorney-general noted that an arbitration tribunal sitting in London had on May 9 last year recorded a consent award for Malaysia to pay US$5.78 billion to IPIC and the bond trustee over a five-year period, with US$1.46 billion of this sum already paid.


But Thomas said that the Malaysian government will apply to the Courts of England for a court order to set aside the arbitration tribunal’s consent award.

“We are pleased to report that the application will be filed today in the High Court in London.


“Malaysia will claim that as a result of the fraud, we are relieved from any obligation to pay the balance of the US$4.32 billion to IPIC or Aabar under the Consent Award, and additionally have a right to recover the US$1.46 billion already paid,” he said in a two-page statement.