Malaysia

MoF receives RM1.9 bil in seized 1MDB funds from DoJ

Total of RM16.05 billion has been deposited into Assets Recovery Trust Account, finance minister says

Updated 5 years ago · Published on 12 May 2021 3:01PM

MoF receives RM1.9 bil in seized 1MDB funds from DoJ
The current balance in the Assets Recovery Trust Account is sufficient to settle the principle and interest of the 1MDB loan for this and next year only, says the finance minister. – AFP pic, May 12, 2021

KUALA LUMPUR – The Finance Ministry today confirmed receiving a deposit of RM1.9 billion from the United States Department of Justice (DoJ) as part of funds seized in relation to 1Malaysia Development Bhd.

In a statement, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said a total of RM16.05 billion has been deposited into the ministry’s Assets Recovery Trust Account under the supervision of the National Audit Department.

“The monies in the trust account have been used to settle 1MDB and SRC International (Sdn Bhd)’s debts. At present, the government has settled RM12.4 billion of 1MDB’s debt and RM3.1 billion of SRC’s.

“The remainder of the debts for the government to settle, which include principal sum, coupons/profits/interest bonds, sukuk and term loans, are RM39.8 billion for 1MDB and RM2.57 billion for SRC.”

Tengku Zafrul said the current balance of the trust account is sufficient to settle the principle and interest of the 1MDB loan for this and next year only.

“The balance does not include the RM2.38 billion settlement to be received from the Ambank Group, and RM336 million from Deloitte. Additionally, negotiations are ongoing with KPMG.”

Once all the funds in the trust account are utilised for the loan settlement, he said, the government will have to undertake the obligation to settle the remainder of 1MDB’s loan, as it was supported via government guarantee and letters of support when the debt was accrued. 

“The recovery of funds related to 1MDB would not be achieved without the assistance of and cooperation between our government and the US government, especially DoJ.

“On behalf of the government, we thanked the US government, and hope that similar cooperation can take place in the future.”

The government’s recovery of 1MDB and SRC International assets at present focuses on parties that have caused losses to the two entities in discharging their duties, whether directly or indirectly, during various operations and transactions involving the said entities, he said.

"All those involved will be made to take full accountability for misconduct either in 1MDB or SRC.” – The Vibes, May 12, 2021

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