1MDB turns important profit from PetroSaudi Joint-Venture
In a recent report by the Rakyat Post, allegations by Member of Parliament Tony Pua that 1MDB had lost billions in a joint-venture with oil company PetroSaudi were deconstructed and exposed as slanderous. The article, which was published on Thursday 26 February, sets out to clarify the sequence of events that left some local politicians wondering about 1MDB’s business decisions.
It is reported, as announced by an official statement issued by 1MDB in January, that the money it had devoted to the investment vehicle created had been completely redeemed. Furthermore, the article highlights the fact that 1MDB’s financial dealings are supervised by international auditing firm Deloitte, and that the 4-year investment in the Cayman Islands that had followed the interrupted joint-venture had generated a very large profit of about $500 million. Therefore, any accusations of the deal having been a financial suicide for the company would seem groundless.
Mr. Pua’s fierce public accusations are further discredited by an analogous demonstration of the financial arrangement PetroSaudi and 1MDB had entered in. The paper goes through a step-by-step explanation of the deal and questions the MP’s ability to analyze it accurately.
Finally, the article reminds its readers of the numerous international projects and high-profile partnerships PetroSaudi boasts, and refers to clauses of the joint-venture agreement that specifically mention the conditions which both parties have apparently respected.