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Malaysia challenges $5.78 billion settlement between 1MDB and IPIC

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Malaysia challenges $5.78 billion settlement between 1MDB and IPIC
FILE PHOTO: Men walk past a 1Malaysia Development Berhad (1MDB) billboard at the fund's flagship Tun Razak Exchange development in Kuala Lumpur March 1, 2015. REUTERS/Olivia Harris/Files   -   Copyright  Olivia Harris(Reuters)
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KUALALUMPUR (Reuters) – Malaysia will file a legal challenge to a 2017 consent award granted to Abu Dhabi fund IPIC in a debt dispute with scandal-hit state fund 1MDB, its attorney general said on Tuesday.

Under the 2017 award, Malaysia was obliged to pay $5.78 billion(4.51 billion pounds) to IPIC and the bond trustee over five years, attorney general Tommy Thomas said in a statement.

“The base of Malaysia’s legal challenge in the High Court in London is that the consent award was procured by fraud or in a manner contrary to public policy,” Thomas said, adding that Malaysia will seek relief from any payment obligations to IPIC.

(Reporting by A. Ananthalakshmi; Editing by Nick Macfie)

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