1MDB audit exposes now zoom in on power purchase agreements

Modified 10 Jul 2016, 7:04 am

In its fourth consecutive day of reporting on the classified auditor-general's report on 1MDB, of which it alleges it has extensive excess, Sarawak Report examined the power purchase agreements in 2012, which 1MDB raised US$3.5 billion through Goldman Sachs.

The London-based website republished on Saturday what it alleged was part of the executive summary penned by auditor-general Amrin Buang.

It also included a translated excerpt of Section 5 of the executive summary.

Sarawak Report linked this particular section with billions channeled to the fake Aabar from 1MDB's power deals.

It also likened the deal to previous PetroSaudi ventures, where it claimed money was channelled to Jho Low's Good Star.

Malaysiakini cannot independently verify if the documents published by Sarawak Report are authentic, nor can it report on the contents due to legal restrictions.

Denial of guarantee

On July 1, Abu Dhabi-based International Petroleum Company (Ipic) denied its subsidiary Aabar Investments PJS, guaranteed 1MDB's controversial "fund units" in a Cayman Islands-registered fund, reported the Wall Street Journal (WSJ).

However 1MDB in a statement on April 12 said it only made the payment to Aabar BVI after communicating with executives at IPIC, and said it was confident of 1MDB's legal position in the matter.

Ipic has since initiated legal action against 1MDB and Malaysia's Finance Ministry and is seeking US$6.5 billion.

Sarawak Report also highlighted in its report the role played by Goldman Sachs.

On Thursday, the website had revealed that it had gained "extensive access" to the auditor-general's report on 1MDB, and provided some details from what was supposedly the report.

It promised to publish more details from the report and the very next day, it published what is claimed to be a "damning" letter from Bank Negara Malaysia to the Public Accounts Committee (PAC).

Deputy Home Minister Nur Jazlan Mohamad had reportedly confirmed that the police will be investigating this matter, as the auditor-general's report is classified under the Official Secrets Act.

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