Abu Dhabi firms to pay US$1.8bil to MOF Inc and 1MDB as settlement, says Finance Ministry

PETALING JAYA: The International Petroleum Investment Company (IPIC) and Aabar Investments PJS (Aabar PJS) have agreed to pay US$1.8bil (RM8.06bil) to the Minister of Finance (Incorporated) and 1Malaysia Development Berhad (1MDB).

"The Finance Ministry is pleased to announce that the Minister of Finance (Incorporated) and 1Malaysia Development Berhad have reached a settlement regarding their dispute with International Petroleum Investment Company and Aabar Investments PJS in respect of the legal proceedings in the London Court of International Arbitration and the London High Court.

"In this respect, IPIC and Aabar PJS have agreed to pay US$1.8bil to the Minister of Finance (Incorporated) and 1MDB," the Finance Ministry said in a statement.

It said that with this settlement, Malaysia and Abu Dhabi look forward to continuing working together for the prosperity and economic benefit of both countries in the future.

In Nov 5,2021, Malaysia was given the go-ahead by a London court to continue its pursuit against Abu Dhabi’s sovereign wealth fund for its role in the multi-billion-dollar 1MDB scandal.

The Malaysian government challenged a 2017 arbitration settlement between the two sides in the UK, arguing that Abu Dhabi state-owned IPIC and Aabar PJS were aware of fraud allegations against former prime minister Datuk Seri Najib Razak at the time the deal was struck.