KINIBIZ A 2009 joint venture that controversial fund 1Malaysia Development Berhad (1MDB) entered into reeks of a con job, an MP said, in urging the company to come clean on the matter.

In a statement today, Petaling Jaya Utara MP Tony Pua stressed that 1MDB chief executive officer Arul Kanda Kandasamy had not explained the matter adequately, and instead was “obviously evasive”.

“Arul Kanda completely avoided dealing with the brazen attempt to siphon US$700 million out of 1MDB to Petrosaudi or its nominees,” said Pua, adding that this is “a blatant failure of the directors’ fiduciary duty and corporate governance”.

Pua ( right ) was referring to a joint venture agreement dated Sept 29, 2009 between 1MDB and Petrosaudi International Limited, which stipulated that 1MDB would inject about US$1 billion into Petrosaudi International’s wholly-owned unit 1MDB Petrosaudi Limited in exchange for 40 percent equity.

In turn, 1MDB Petrosaudi was incorporated on Sept 18, 2009, just 11 days before the joint venture agreement.

A week later on Sept 25, Petrosaudi International and 1MDB Petrosaudi executed an agreement that stipulated the new unit owes its parent US$700 million.

Following the execution of the joint venture agreement on Sept 29, 1MDB Petrosaudi paid the US$700 million debt obligation to Petrosaudi International in full on Sept 30, concluding a chain of events that spanned less than two weeks from the moment 1MDB Petrosaudi was incorporated.

“On the surface it looks like a con job,” said Pua at the DAP headquarters in Kuala Lumpur.

For the full story go to KiniBiz .

When asked to respond to Pua's allegations, 1MDB referred to its earlier press statement regarding its deal with PetroSaudi and did not elaborate further.