He warned that this may affect international diplomatic or trade relationships and cause serious harm to investments, exports and eventually the people.
He said over the past week, Damansara MP Tony Pua and Finance Minister Lim Guan Eng had made allegations implying that funds paid for two pipeline projects, awarded to a China company, had been diverted to 1MDB, in a move which they alleged was round-tripping or money laundering.
“This China company is the wholly-owned subsidiary of the fourth biggest company by revenue in the world and is fully-owned by the China government.
“Yesterday, this company had issued a statement denying the allegations by the PH leaders.
“It had warned the media to be factual in their reporting and not be influenced or pressured by unnamed sources to report based on false information that defames them.
“This is a big blow to the reputation and credibility of the finance minister of our country as he is now accused of giving false information and defaming another country,” Liang said in a statement.
He said these two PH leaders must now defend themselves by clarifying the following:
# If they are certain that the state-owned China company had grossly over-priced the pipeline projects to cheat Malaysia; and
# If they are certain that the state-owned China company had intentions of not completing their project within the agreed time-frame of the contract since they had allegedly received most of the payments but only completed 15% of the work; and,
# If they are certain that the state-owned China company had colluded with the previous BN government to engage in money-laundering.
China Petroleum Pipeline Engineering Co Ltd (CPP) had denied that funds from its two pipeline projects in Malaysia were used to pay debts linked to 1MDB.
“We wish to make it very clear that all funds from Export-Import Bank of China (Exim Bank China) were only paid directly to CPP’s bank accounts.
“This is in accordance with the strict anti-money laundering banking rules, regulations, and signed legal agreements,” CCP said in a statement.
“There were absolutely no funds paid to any third-party Cayman Island-based company and/or companies whatsoever. Any allegations or statements to the contrary are completely false.”
The CCP was denying remarks by Pua, in a BBC article, on the possibility of links between 1MDB and the pipeline projects in Kedah and Sabah.
CCP said the article “contains blatantly false information with respect to the company’s pipeline projects in Malaysia”.
Last month, Lim’s revelation that 88% of the contract cost, or RM8.3 billion, had been paid out by a finance ministry subsidiary despite only 13% of the work being completed, made headlines.
Soon after, the two projects were suspended, along with the multi-billion ringgit East Coast Rail Link.