US DOJ remits RM1.9bil in seized monies to Malaysia

PETALING JAYA: The US Department of Justice (DOJ) has remitted RM1.9bil in seized 1Malaysia Development Berhad (1MDB) funds to the government, says the Finance Ministry.

It said to date, the Malaysia’s Assets Recovery Trust Account has received RM16.05bil of seized and repatriated 1MDB funds.

Any balance in the Trust Account, which is under the custody of the Accountant General’s Department of Malaysia will be utilised to primarily repay and service 1MDB and SRC International Sdn Bhd’s remaining debts, the ministry said.

“To date, the Government has repaid RM12.4bil of 1MDB’s debts and RM3.1bil of SRC’s debts,” it added.

The balance of debts still outstanding, comprising the principal and coupon/ profit/ interest of bonds, sukuk and term loans, currently amounted to RM39.8bil (1MDB) and RM2.57bil (SRC).

“The current balance is sufficient to service 1MDB’s debt obligations for 2021 and 2022 only. This balance excludes the settlement amount of RM2.83bil from Ambank Group and RM336mil from Deloitte PLT1.

“Negotiations are also currently ongoing with KPMG. Once all recovered funds in the Trust Account have been utilised, the Government will still have to continue bearing the burden of servicing 1MDB’s debt obligations, which were backed by the Guarantee and Letter of Support when these debts were created,” Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said in a statement on Wednesday (May 12).

He said the recovery would not have been achieved without the good cooperation with the US, particularly with the DOJ.

“On behalf of the Government of Malaysia, we would like to thank the US Government and look forward to the continued cooperation between us,” said Tengku Zafrul.

The settlement amount by Deloitte includes a RM42mil settlement amount for SRC, previously a subsidiary of 1MDB.

The ministry said the government’s current recovery efforts were focused on parties that have caused losses to 1MDB and SRC during the execution of their duties, whether through direct or indirect involvement in various operations and transactions, as well as those who have wrongfully received SRC monies disguised as CSR activities.

It added that those involved would be made fully accountable for the wrongdoings caused to the country through their involvement in 1MDB and/or SRC.

On Monday (May 10), the ministry confirmed that legal representatives of 1MDB and SRC had filed a total of 22 civil suits to recover RM96.6bil.

It said the legal representatives of 1MDB had filed civil suits against nine entities (including two foreign financial institutions) and 25 individuals for various wrongdoings.

The wrongdoings included breach of contractual, statutory, common law and fiduciary duties; breach of trust; fraud; conspiracy to defraud; fraudulent misrepresentation; fraudulent breach of duties and trust; fraudulent concealment; fraudulent misappropriation; dishonest assistance in misappropriation of funds; negligence, knowing receipt and unjust enrichment.