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No investment bank handling 1MDB's funds in Caymans
Published:  Mar 16, 2016 3:48 AM
Updated: 10:06 AM

PARLIAMENT No investment bank was appointed to manage state investment firm 1MDB's funds in the Cayman Islands, the Finance Ministry said.

It said this in a written parliamentary reply to Tony Pua (DAP-Petaling Jaya Utara) who asked if the remainder US$940 million of the Cayman Islands fund is managed by an investment firm.

He also asked if the investment was guaranteed by British Virgin Island firm Aabar Investments PJS Ltd or Abu Dhabi firm Aabar Investments PJS.

The Finance Ministry did not answer the second question.

It only said that the remainder of the funds, now measured in "units", is earmarked to pay 1MDB's debts.

The Finance Ministry said it was part of its debt-for-asset swap with the International Petroleum Investment Company (IPIC) under the 1MDB rationalisation plan.

The Cayman Islands investment had generated controversy as 1MDB president Arul Kanda Kandasamy in January last year claimed the whole of the US$2.318 billion was fully redeemed in cash through two tranches.

Prime Minister Najib Abdul Razak, who is also finance minister, later claimed this was a mistake as the cash was actually "units" and they had been moved to Singapore.

This is with regards to the second tranche which is worth US$1.103 billion after the first tranche had already been spent.

1MDB later said its president Arul Kanda took full responsibility for the mistake.

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