Abu Dhabi's Ipic, Aabar to pay RM8 billion to settle 1MDB dispute

Abu Dhabi's International Petroleum Investment Co (Ipic) and its unit Aabar Investments PJS have agreed to pay US$1.8 billion (RM8.06 billion) to settle a legal dispute over the scandal at state fund 1MDB, the finance ministry said today.

Malaysia in 2018 filed a challenge in a London court against a settlement agreement between 1MDB and Ipic that had been negotiated a year earlier during the leadership of former prime minister Najib Razak. Najib was sentenced to 12 years in jail last year after being found guilty in a 1MDB-related corruption case.

In its challenge, the government had argued that the 2017 settlement was procured by fraud.

The finance ministry said today that the Abu Dhabi companies, 1MDB and the Minister of Finance (Incorporated) had reached a settlement in respect of proceedings in the London Court of International Arbitration and the London High Court.

"With this settlement, Malaysia and Abu Dhabi look forward to continue working together for the prosperity and economic benefit of both countries in the future," the ministry said in a statement.

1MDB is the subject of corruption and money-laundering investigations in at least six countries.

An estimated US$4.5 billion was misappropriated from 1MDB by high-level officials of the fund and their associates between 2009 and 2014, the US Justice Department has alleged.