DAP parliamentarian Tony Pua today blasted 1Malaysia Development Berhad (1MDB)'s RM 2.5 billion joint venture agreement with PetroSaudi Holdings, calling it a "scam".

 

1MDB allegedly entered into a joint venture agreement with PetroSaudi in 2009, investing US$1 billion into the deal.

 

However, the joint venture already had a "pre-existing" debt, in the form of US$700 million loan PetroSaudi had taken from its parent company, PetroSaudi International.

 

Sarawak Report ran an article yesterday exposing the joint venture agreement and how 1MDB had to fork out two-thirds of its initial investment to repay its partner's loan.

 

"This is the first hole which 1MDB dug for itself, resulting in all subsequent bigger holes dug (up) to cover up this scam!

"Will the crooks pay the price?" Pua, the Petaling Jaya Utara MP, blasted in a Facebook posting today.

 

According to the report, 1MDB had agreed to undertake the loan that PetroSaudi had taken from its parent company on the first day of the joint venture itself.

 

In fact, PetroSaudi put "zero cash" into the deal and only invested its "assets", the report further stated.

 

“It is like you or me buying a house that has a great big loan of two-thirds of its market value outstanding on the property.

"Who in their right mind would buy into such a deal?” Pua was quoted by Sarawak Report as saying regarding the deal.