China Petroleum Pipeline says no funds paid to third parties

China Petroleum Pipeline Engineering Co., Ltd (CPP) has refuted reports about the allegations of payment of funds to third parties over its pipeline projects in Malaysia.

KUALA LUMPUR: China Petroleum Pipeline Engineering Co., Ltd (CPP) has refuted reports about the allegations of payment of funds to third parties over its pipeline projects in Malaysia.

It said all funds from Export-Import Bank of China (EXIM Bank China) were only paid directly to its bank accounts. 

CCP said this was in accordance with the strict anti-money laundering banking rules, regulations, and signed legal agreements.

“There were absolutely no funds paid to any third-party Cayman Island-based company and/or companies whatsoever. Any allegations or statements to the contrary are completely false,” it said.

The Wall Street Journal (WSJ) reported on Wednesday Malaysian officials are focusing on a US$2.5bil agreement signed in November 2016 in which state-owned China Petroleum Pipeline Bureau, a subsidiary of China National Petroleum Corp., would build a series of petrochemical and gas pipelines on Malaysia’s main peninsula and in the state of Sabah on Borneo island..

According to the WSJ report, Malaysia’s Finance Ministry said it had paid China Petroleum over US$2bil, drawing largely on loans from Export-Import Bank of China.

The Malaysian government suspects money from the project was used to pay debts for 1MDB, which is being investigated for graft in several countries including the US, the report said, quoting two Malaysian officials.