Malaysian authorities have seized more than 1 billion ringgit ($241.43 million) held by China Petroleum Pipeline Engineering Corp. (CPP), a Chinese state-owned company, against the backdrop of an ongoing dispute involving two multi-billion-dollar energy pipeline projects that were suspended in July 2018, said Caixin.
In an unprecedented move in Malaysian banking, the Pakatan Harapan (PH) government ordered global banking giant, HSBC, early in July to transfer the funds held in CPP’s account in Malaysia to Suria Strategic Resources, which is wholly owned by the Malaysian Ministry of Finance.
In response to queries from The Straits Times, CPP, which was the lead contractor for the pipeline projects awarded in November 2016 by the previous government of Prime Minister Najib Razak, confirmed that the funds were transferred out.
“CPP firmly abides with the laws of Malaysia and is perplexed by the unilateral transfer of monies without notifying CPP,” said the company, a unit of China’s state-owned oil and gas giant China National Petroleum Corp.
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