IPIC settlement more important than Equanimity, says Najib

Former prime minister Najib Abdul Razak said Putrajaya has more to gain by pursuing the settlement with Abu Dhabi's International Petroleum Investment Company (IPIC) than selling the RM1 billion mega yacht Equanimity.

Speaking to reporters at the Parliament lobby today, Najib repeatedly said his administration did not pursue claims that 1MDB funds were abused to acquire the yacht because his administration was busy pursuing the full settlement with IPIC.

Najib described the current administration's plans to bring the Equanimity to Malaysia before selling it to the highest bidder as a "populist move."

"What is important is the settlement with IPIC. That is the biggest sum. That is why we didn't pursue the yacht. We wanted (the) big settlement to be settled first," he said.

Najib explained that the value of the vessel would have depreciated and that few in the world could afford to buy the yacht from Malaysia.

He also reiterated claims that he had no prior knowledge of 1MDB's link to the Equanimity, and that he had never boarded the vessel before. He stressed that he only learned about the vessel through press reports.

"What is important that I have no knowledge whatsoever as to the yacht and also the yacht itself is subject to litigation. It's not a clear-cut matter. I notice even (lawyer) Matthias Chang has come out with a statement in a blog questioning the move, the legality of it," he said.

Despite repeatedly stating that Putrajaya could recover a "bigger amount" through the settlement with IPIC, Najib was unable to state the amount.

Reporter: During your time (as prime minister) was there any evidence that money from 1MDB was used to buy this yacht?

Najib: We do not know. It is subject to investigations. What is important is the settlement with IPIC. That is the biggest sum. We have to find out who really owns the yacht.

Reporter: What is the amount that can be recovered from IPIC?

Najib: Still subject to negotiations with them. It is (a) bigger amount.

IPIC had sought US$6.5 billion from 1MDB, which was formed by Najib's government in 2009. The matter went for arbitration in 2016 and a settlement was reached in April last year. The terms, however, are vague.

What has been established was that the Malaysian government had to pay US$1.2 billion in two equal payments on July 31 and Dec 31. The first tranche was delayed and interest was incurred.

According to IPIC, both parties had agreed to enter into "good faith discussions in relation to payments made by 1MDB Group to certain entities."

Although this was never elaborated, it is likely to refer to the US$3.5 billion paid by 1MDB to Aabar Investments PJS Ltd, incorporated in the British Virgin Islands (Aabar BVI), instead of another company with a similar named and owned by IPIC.

In April 2016, 1MDB president Arul Kanda Kandasamy suggested that 1MDB could have been a "victim of fraud."

The Equanimity, which has long been used as an example of the corruption involved in 1MDB, docked in Port Klang this afternoon. The US Department of Justice claimed that 1MDB funds were used to acquire the yacht.

Putrajaya plans to sell it off in order to recover funds and service debts owed by 1MDB. - Mkini