Former premier Najib Abdul Razak has touted Mubadala's statement that 1MDB does not owe Mubadala or the International Petroleum Investment Company (IPIC) any debt at present.

However, the fact that 1MDB no longer owed IPIC anything was because the Malaysian fund had conceded billions to the Abu Dhabi firm in a settlement when Najib was finance minister appeared to elude the latter.

IPIC and Mubadala are one of the same after a merger.

Yesterday, attorney-general Tommy Thomas announced that Malaysia had filed a challenge against the settlement at the London High Court.

"As a reaction to the Malaysian government's statement (on the challenge), IPIC issued a statement stating that 1MDB did not owe any money to it which clearly contradicts Pakatan Harapan's claim,” said Najib in a Facebook posting today.

"Who is right? Who is wrong? Logically, a party that is being owed billions would not suddenly say 1MDB does not owe it anything.

"In fact, it is IPIC which owes money to 1MDB and must be paid by Dec 30, 2020. The settlement is to resolve the 1MDB issue so every sen belonging to 1MDB can be recouped," he added.

Under the settlement last year, 1MDB agreed to repay US$1.2 billion to IPIC and undertook to pay two bonds totalling US$3.5 billion which IPIC had guaranteed, thereby freeing IPIC of its obligations.

Including the coupon rate, until the bonds mature in 2022, 1MDB would need to fork out a total of US$5.78 billion.

1MDB made the concessions despite claiming it had already paid a separate US$3.51 billion to IPIC's subsidiary Aabar Investments PJS.

Not only did 1MDB make billions in concessions to IPIC, it also did not secure any guarantee from IPIC on resolving the separate US$3.51 billion payment which 1MDB claimed it paid to the Abu Dhabi company but IPIC said it never received the payment.

Instead, 1MDB and IPIC only agreed to enter into "good faith" discussions on the "missing" payments.

The outline of this settlement was announced by IPIC to the London Stock Exchange.

Following 1MDB's concessions, Mubadala said the Malaysian fund did not currently owe any money to IPIC but stressed that the settlement remained legally binding.

The US Department of Justice (DOJ) believed that US$3.51 billion was paid to a different company bearing a similar name - British Virgin Islands-based Aabar Investments PJS Ltd, which was unrelated to IPIC.

The money was then allegedly diverted for the benefit of businessperson Jho Low, Najib and their associates, according to the DOJ.

The settlement proceeded despite some resistance from within Najib's administration, including the then finance minister II Johari Abdul Ghani.

The Harapan government is claiming that the settlement was not valid as it was arrived at through fraud.

"The basis of Malaysia's legal challenge in the High Court of London is that the award was procured by fraud or in a manner contrary to public policy.

"The court application relates to the knowledge of IPIC and Aabar of the serious allegations made by the US DOJ against Najib who was also the moving spirit and ultimate decision-maker in 1MDB.

"Najib is identified as 'MO1' in the DOJ pleadings. Any reasonable reader reading these court documents would immediately become aware of his central role in defrauding 1MDB to the benefit of himself, his stepson and Jho Low," Thomas had said.

In his Facebook posting today, Najib reiterated his call on the government to release the details of the 1MDB-IPIC settlement, claiming it would "prove" he had the country's interest in mind.

Najib said he did not publicly speak about the settlement in the past because he was the prime minister and the matter involved a foreign country.

"My position is that the government should not pick a fight with another country. I prefer to choose the path where there can be a good solution without creating discord," he added.