Graft denials come under strain in Malaysia fund scandal

AFP | .

Malaysia's prime minister and the company he founded, 1MDB, have weathered a year-long barrage of corruption allegations with nothing-to-see-here assurances, but a string of recent revelations is placing those denials under growing strain.

On Monday an Abu Dhabi sovereign-wealth fund which was helping 1MDB recover from massive debts abruptly withdrew its safety net, declaring the Malaysian state-owned company in default on a $1.1 billion loan.

The move centres on suspicions that 1MDB -- rather than repay the loan to the Abu Dhabi fund, International Petroleum Investment Co (IPIC) -- instead diverted the money, according to a Wall Street Journal report.

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