KUALA LUMPUR: Payments totalling US$3.5 billion (RM14.38 billion) from 1Malaysia Development Berhad to British Virgin Islands Aabar Investment PJS Limited did not require approval from Prime Minister Datuk Seri Najib Razak.
The Finance Ministry in a parliamentary reply today, said the payments were an administrative undertaking from previously-approved decisions.
As such, the ministry also said, they did not require a written consent from Najib, who is also the Finance Minister, even though Article 117 of 1MDB's Memorandum and Articles of Association stated it was necessary for the investment firm's dealings.
It said: "The payments were made based on several agreements that were signed and as an administrative decision which is based on the approval and ratification from the Board of Directors generally."
The ministry was responding to Tony Pua (DAP-Petaling Jaya Utara) who asked if the prime minister gave written consent for the transfer of the funds to the firm that has been disavowed by Abu Dhabi-based International Petroleum Investment Company (IPIC).
The investment firm had made the payments to Aabar BVI, which is nearly identical in name to IPIC subsidiary Aabar PJS Investments. IPIC had said that Aabar BVI was not a member of its group.
It further claimed that it did not receive any of the US$3.5 billion paid to the British Virgin Islands-based firm while 1MDB had subsequently insisted that it made the payments but has since suggested that it may be a victim of fraud.