1MDB says it may be victim of US$3.5b fraud

Kuala Lumpur

1MALAYSIA Development Bhd, the troubled Malaysian state fund that's the subject of global investigations, said it could be a victim of fraud if payments of US$3.5 billion intended for an Abu Dhabi sovereign wealth fund never made it there.

Abu Dhabi's International Petroleum Investment Co (IPIC) this week denied ownership of a company that received the funds known as Aabar Investments PJS Limited or Aabar BVI. Swiss authorities said on Tuesday that they are investigating two former public officials from the United Arab Emirates, who handled Abu Dhabi sovereign wealth funds that guaranteed 1MDB bonds.