Malaysia says Abu Dhabi's IPIC and Aabar to pay $1.8 bln to settle 1MDB dispute (updated)

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27/02/2023 09:49

(Adds background, ministry statement)
       KUALA LUMPUR, Feb 27 (Reuters) - Abu Dhabi's
International Petroleum Investment Co (IPIC) and its unit Aabar
Investments PJS have agreed to pay $1.8 billion to settle a
legal dispute over the scandal at Malaysian state fund 1MDB,
Malaysia's finance ministry said on Monday.  
    Malaysia in 2018 had filed a challenge in a London court
against a settlement agreement between 1MDB and IPIC that had
been negotiated a year earlier during the premiership of former
leader Najib Razak. Najib was sentenced to 12 years in jail last
year after being found guilty in a 1MDB-related corruption case.
        In its challenge, Malaysia had argued that the 2017
settlement was procured by fraud. 
  
        The finance ministry said on Monday the Abu Dhabi
companies, 1MDB and Malaysia's Minister of Finance
(Incorporated) had reached a settlement in respect of
proceedings in the London Court of International Arbitration and
the London High Court.
    "With this settlement, Malaysia and Abu Dhabi look forward
to continue working together for the prosperity and economic
benefit of both countries in the future," the ministry said in a
statement.  
        Malaysia's 1MDB is the subject of corruption and
money-laundering investigations in at least six countries.
  
        An estimated $4.5 billion was misappropriated from 1MDB
by high-level officials of the fund and their associates between
2009 and 2014, the U.S. Justice Department has alleged.
  
        
  
          

 (Reporting by Rozanna Latiff
Editing by Ed Davies, Kanupriya Kapoor)
 ((rozanna.latiff@thomsonreuters.com; +603 2333 8004; Reuters
Messaging: @rozlatiff on Twitter))