Malaysia: PM confirms Putrajaya seized MYR1bn from China company

• Putrajaya did indeed seized more than MYR1bn from China Petroleum Pipeline Engineering Ltd (CPP) after a MYR9.41bn pipeline project was scrapped, Prime Minister Dr Mahathir Mohamad said on 15 Jul 19.
• He said the China-based company had completed only 13% of the project but taken 80% of the money from the government as payment.
• On 13 Jul 19, it was reported that Putrajaya had seized more than MYR1bn held by the state-owned company.
• Earlier in Jul 19, the Pakatan Harapan government ordered banking giant HSBC to transfer funds held in CPP’s account in Malaysia to Suria Strategic Resources Sdn Bhd.
• Suria Strategic Resources is wholly owned by the Finance Ministry.
• Sources said the move was linked to a dispute involving two multi-billion-dollar energy pipeline projects suspended in Jul 18 over links to the 1Malaysia Development Bhd (1MDB) scandal.
• On whether the cancellation of the pipeline project would affect Malaysia-China ties, Dr Mahathir said there was nothing for the Chinese government to be upset about.

External Link : https://www.themalaysianinsight.com/s/168511