1Malaysia Development Bhd (1MDB), in rebutting an article by the Wall Street Journal (WSJ) relating to US$1.4 billion in payments made by 1MDB, has reiterated that its audited financial statements clearly describe the amount and purpose of the payments, which it said are structured as a deposit.

Based on those payments, 1MDB said it can confirm that International Petroleum Investment Co (IPIC) did provide, and continues to provide, guarantees for the principal and interest of 2 x US$1.75 billion bonds issued by 1MDB, with a total principal and interest amount of approximately US$5.5 billion.

In a statement today, 1MDB said the WSJ did not name its source or provide any proof of the unproven allegations it was making, thereby seriously discrediting its sensationalist story.

1MDB also confirmed that 1MDB auditors Deloitte made specific and detailed enquiries on these payments prior to signing off on the 1MDB audited accounts.

Deloitte has strongly defended its methodology and audit process of 1MDB at the Public Accounts Committee (PAC) hearings.

In a related development, 1MDB expressed its concerns over confidential information on the company purportedly obtained by WSJ.

"We are shocked that a hitherto reputable publisher such as the WSJ would make use of clearly confidential information in its reporting.

"We refer specifically to the WSJ confirming it has reviewed a 'transcript of the proceedings' from a parliamentary committee probing 1MDB, of which the only possible source is the PAC hearings on 1MDB," 1MDB said.

1MDB strongly urged the relevant authorities to investigate this matter thoroughly and take the requisite action to preserve the process integrity and Standing Orders of the Malaysian Parliament.

The actions by WSJ are a potential breach of Malaysian law by a supposedly respectable foreign publication, it said.

"We are further concerned as to who involved in the PAC hearings may have leaked this transcript, which is clearly an attempt to prejudice the PAC investigations and deny 1MDB its right to due process as provided for by the laws of Malaysia," it added.