The RM2.5 billion (US$700 million) listed as a loan repayment from 1Malaysia Development Berhad (1MDB) to PetroSaudi International during 1MDB's joint venture with PetroSaudi in 2009, was channelled to a company controlled by tycoon Jho Low, online news portal Sarawak Report alleged yesterday.

 

It claimed it obtained confidential email exchanges and the whole joint venture agreement worth RM3.6 billion between 1MDB and PetroSaudi made in September 2009.

 

Last week, Sarawak Report revealed contents of the joint venture agreement which stated that 1MDB had to undertake to repay a RM2.5 billion loan that PetroSaudi had taken from its parent company.

 

However, in its report yesterday, it exposed alleged email communications that revealed that PetroSaudi had agreed to act as a "front" for the money to be channeled to a foreign company allegedly controlled by Jho Low and his business associates.

 

The controversial Penang-born tycoon had been constantly linked to Prime Minister Najib Abdul Razak ( left ), and was alleged in the report to have acted as though he represented the PM in communications with both PetroSaudi and 1MDB chiefs.

 

Low and his business associates were constantly copied in all email communications regarding negotiations pertaining to the joint venture, it said.

PetroSaudi: Money didn't go to anyone else

 

Sarawak Report said that in spite of official denials, the documents showed that the entire joint venture deal was "conceived, managed and driven" by Low (below).

 

The report also states that 1MDB bosses were kept out of the loop, and were given an overview of PetroSaudi's portfolio merely days before the massive joint venture agreement was penned in London. 

When contacted, 1MDB president Arul Kanda (right) reiterated that the firm has redeemed all the funds it put into the PetroSaudi deal, plus a profit of $US488 million (RM1.76 billion).

Arul Kanda did not respond to allegations that the US$700 (RM2.5 billion) had gone to a company linked to Low.

PetroSaudi said the all funds 1MDB invested into the deal were channeled to PetroSaudi firms and that the news reports are "malicious", Bernama reported.

Sarawak Report 's full article can be accessed here.

The report was in collaboration with London's The Sunday Times .

The Sunday Times reported that a source close to Low dismissed claims that he was a secret broker as “without merit”, because he had said this year that he gave his views to 1MDB on various matters.

He had not profited personally from the fund nor has he been employed or retained by 1MDB, the source said.

Similarly, the Malaysian government told the UK newspaper that Prime Minister Najib is not involved in 1MDB's  day-to-day operation.

"Views expressed by certain quarters concerning 1MDB should be examined in light of political motivation.

"However, if any wrongdoing is proven, the law will be enforced without exception."

Low strikes back

In another development, Low threatened to sue The Edge and its related news site The Malaysian Insider over articles on his involvement with 1MDB, the latter reported today.

According to the report, Low (left, in black) in a letter of demand dated Feb 26 pressed for the retraction of “false and defamatory assertions” in an article titled 'Razak family concerned about inheritance talk, say siblings' published in the news portal on February 24.

Low’s lawyers also demanded the publications from writing articles of that sort in the future.

However, The Edge chief executive officer Ho Kay Tat in a note which accompanied the letter of demand published, said the group was standing by the stories written and will not cease publishing such articles.

“We would like to state here that The Edge Media Group stands by all the articles we have published about Mr Low and about 1MDB, and we will continue to publish news stories about Mr Low and about 1MDB as and when it is merited,” Ho was quoted saying.

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