Anwar: 1MDB has dubious deals with Petrosaudi

Anwar Ibrahim claims that the development company serves to enrich BN cronies and carry out financial bail-outs.

KUCHING: PKR de facto leader Anwar Ibrahim today claimed 1Malaysia Development Bhd (1MDB) was involved in a shady deal with a foreign company to profit cronies linked to the ruling coalition.

And turning up the heat in the ongoing Sarawak polls, the opposition leader also claimed the deal with Saudi Arabia’s Petrosaudi was linked to the financial arm of UBG Bhd, a company owned by the state’s powerful Chief Minister Taib Mahmud.

The Najib administration had announced that 1MDB, a sovereign wealth fund created by Prime Minister Najib Tun Razak, had entered into a deal with Petrosaudi worth RM3.5 billion in hard-cash.

It sold back its stake to the company for RM4.1 billion, recording a profit of roughly RM615 million but Anwar claimed the amount would be paid via an 11-year period loan which will only be fully repaid by March 31, 2021.

This means 1MDB, which was established shortly after Najib took office in April 2009 with a capital start up of RM5 billion in government bonds, was merely book money.

And this is despite having 70% of its original capital made up of loans with no guarantees or repayment, said the opposition leader.

The profit declaration therefore, he said, “was nothing more than an accounting entry to hide a trail of arrangement to create slush funds for BN”.

Tax haven gives deal secrecy

He also claimed that PetroSaudi and many of its associates are companies incorporated in tax havens, such as Cayman Islands and the British Virgin Islands.

“Therefore, there will not be any transparency of the transactions between 1MDB and PetroSaudi and the latter’s associates which will remain to be shrouded in secrecy,” claimed the former deputy prime minister.

He claimed to have with him evidence to prove his allegation in the form of financial statements of the transaction between 1MDB and the Saudi Arabia petrol giant.

The financial statements also indicated that PetroSaudi had paid over RM1.5 billion to takeover UBG Bhd last year, claimed Anwar.

UBG is the financial arm of the business empire owned by Taib’s family which is understood to be having difficulties.

“Where did that money come from?” The financial statements strongly suggest that 1MDB’s financial merry-go-round is clearly a political slush created by the BN and Najib to enrich cronies and bail them out,” he charged further.

Special audit to probe 1MDB, PetroSaudi

Anwar is now demanding for the appointment of a special audit to probe into the transactions involving 1MDB, PetroSaudi and UBG.

This is to ascertain whether or not government money has been used for a slush political fund.

The opposition leader’s accusation comes amid a closely contested state polls as Pakatan Rakyat aims to intensify its offensive against a flailing ruling coalition.

While it may be naïve to think of ending BN’s five decade rule here, the opposition bloc appears to be on the way to wrest about 16 seats and achieve its target of sending a strong political signal that BN’s dominant days are numbered.

The pact currently holds seven seats in the 72 seat state legislative assembly.