KUALA LUMPUR - Malaysia’s finance ministry said on Monday that Abu Dhabi’s International Petroleum Investment Co (IPIC) and Aabar Investments PJS have agreed to pay US$1.8 billion (S$2.4 billion) to settle a legal dispute over the multi-billion-dollar 1MDB scandal.

Malaysia filed a challenge in a London court in 2018 against a settlement agreement between 1Malaysia Development Berhad (1MDB) and IPIC that had been negotiated a year earlier during the premiership of Najib Razak.

Former prime minister Najib was sentenced to 12 years in jail in 2022 after being found guilty in a 1MDB-related corruption case. 

In its challenge, Malaysia argued that the 2017 settlement was procured by fraud. 

The finance ministry said on Monday that the Abu Dhabi companies, 1MDB and Malaysia’s Minister of Finance (Incorporated) had reached a settlement in respect of proceedings in the London Court of International Arbitration and the London High Court. 

“With this settlement, Malaysia and Abu Dhabi look forward to continuing to work together for the prosperity and economic benefit of both countries in the future,” the ministry said in a statement. 

Malaysia’s 1MDB is the subject of corruption and money-laundering investigations in at least six countries. 

An estimated US$4.5 billion was misappropriated from 1MDB by high-level officials of the fund and their associates between 2009 and 2014, the US Justice Department has alleged. REUTERS