MoF confident of 1MDB’s victory in arbitration case

johari-ghani-1mdb

PUTRAJAYA: The Ministry of Finance (MoF) is very confident 1Malaysia Development Bhd (1MDB) will win in the arbitration case brought  by the International Petroleum Investment Company (IPIC) and Aabar Investments PJS (Aabar) over a debt payment dispute.

Second Finance Minister Johari Abdul Ghani said, “Based on all the documents supplied by 1MDB to me, I’m very confident (of 1MDB’s victory).

“That’s why we are taking the position of not paying the interest… We will fight and win this case,” he told reporters after chairing the 2017 Budget Focus Group Meeting on the cost of living here today.

IPIC and Aabar have submitted a request for arbitration (RFA) to the London Court of International Arbitration.

The RFA stipulates the purported failure of 1MDB and the Minister of Finance Inc (MoF) to perform their contractual obligations under the binding term sheet as described in IPIC GMTN Ltd’s announcement of June 10, 2015.

Johari said the arbitration case was set for mention in September.

He said the dispute was over IPIC denying it was the parent company of Aabar although the records proved its ownership.

“We have been dealing with all these companies, but now they suddenly say that the company does not belong to them. We want to see them in court and let the court of arbitration look at our documents,” he added.

On 1MDB’s statement that its 2013 and 2014 audited accounts should not be relied upon, he said it had no bearing on the case as the state investment fund had settled its debts with local banks and had no intention of borrowing more money.