KUALA LUMPUR: China Communications Construction Company, which owns Australian engineering group John Holland, has refuted claims of any involvement in a supposed plot to cover up a corruption scandal at 1Malaysia Development Bhd (1MDB) involving a railway contract.
According to a report by The Australian, CCCC said it had no knowledge of the claims made by London blog Sarawak Report.
“We will continue to follow those false accusations made by certain media and will take necessary steps to defend our lawful rights,” the company was quoted as saying.
Sarawak Report had last week claimed that Malaysian authorities had planned to to double the cost of the East Coast Rail Project from RM30 billion ringgit to RM60 billion ringgit.
It claimed that a company nominated by CCCC would then assume a portion of 1MDB’s debt in return for assets held on the sovereign fund’s books at the same amount.
Sarawak Report had claimed that a second company nominated by CCCC would pay US$315m to buy 70 per cent of and 90 per cent of two separate companies.
The two Malaysian companies are linked to 1MDB as subsidiaries of conglomerate UBG when it was taken over in 2010 in a deal allegedly funded by 1MDB and benefiting business figure Jho Low.
Low is alleged by US investigators to be a key figure in the issues involving 1MDB.