Finance Minister II Johari Abdul Ghani said he was not involved in settlement negotiations between 1MDB and Abu Dhabi’s International Petroleum Investment Company (IPIC).

He was asked to respond to concerns that taxpayers monies may be involved in the preliminary settlement of US$1.2 billion, as raised by PKR vice-president Rafizi Ramli.

“I’m not involved in the negotiations. It (is) being done by (the) management and board of 1MDB with PMO’s (Prime Minister’s Office) officers.

“I have yet to be briefed (on) the final outcome of the settlement,” Johari told Malaysiakini when contacted.

Johari is presently in Washington, US for the World Bank and International Monetary Fund meetings.

Yesterday, Singapore’s Straits Times reported that 1MDB was on the verge on inking a settlement to pay the US$1.2 billion it owed to IPIC and will continue to negotiate on settling a further US$3.5 billion.

The US$1.2 billion, which includes interest, was an emergency loan IPIC provided to 1MDB in 2015 when the fund was struggling to repay its debts.

The report said 1MDB planned to raise the US$1.2 billion by selling the “fund units” held by the fund’s subsidiary Brazen Sky Ltd.

However, Rafizi raised concern that taxpayers monies may be involved in the purchase of Brazen Sky Ltd and singled out Johari.

He had urged the minister against any agreement that would involved public funds.

Brazen Sky had been a subject of controversy when Prime Minister Najib Abdul Razak claimed the company held US$1.01 billion in cash in Singapore, but later clarified it was “fund units”.

It is unclear whether the fund units exist or are worth the amount claimed as 1MDB's accounts had not been audited since 2015 while Deloitte had disowned its audit of 1MDB accounts for 2013 and 2014.