KUALA LUMPUR, May 10 — The government is hunting down others who have received funds from 1Malaysia Development Berhad (1MDB) and SRC International Sdn Bhd, after settlements with banking giants Goldman Sachs, Deloitte PLT and Ambank Group.
In a statement today, the Ministry of Finance (MoF) said that six of the recent civil suits on 1MDB were filed by the fund itself, while 16 were by its subsidiary SRC for the recovery of assets with a combined total in excess of RM96.6 billion, including approximately RM300 million against various local parties.
”Following significant and successful settlements with Goldman Sachs, AmBank Group and Deloitte PLT, the government’s recovery efforts are now focused on pursuing other wrongdoers who have caused losses to 1MDB and/or SRC during the execution of their duties, as parties directly or indirectly involved in 1MDB and/or SRC’s various operations and transactions.
“As previously mentioned, the government will not rest until all those involved are made fully accountable for the wrongdoings caused to the country through their involvement in 1MDB and/or SRC,” Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said.
Earlier today, it was reported that three law firms on Friday filed the suits on behalf of 1MDB and its subsidiary SRC International Sdn Bhd against companies and individuals they have accused of being complicit in fraud against the duo.
In a report by The Edge, both 1MDB and SRC are seeking a total of US$23 billion (RM94.43 billion) and another RM300 million against those alleged domestic recipients of siphoned funds from both companies and its subsidiaries.
MoF said that the writs filed by 1MDB are against a total of nine entities (including two foreign financial institutions) and 25 individuals for various wrongdoings including 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.
It said that the writs filed by SRC are against a total of 15 individuals and eight entities for various wrongdoings including abuse of power, breach of fiduciary duties in public office, breach of trust, conspiracy, dishonest assistance, fraudulent breach of duties, knowing receipt, misfeasance and wrongful conversion.
“1MDB and SRC contend that these entities and/or individuals have been unjustly enriched by wrongfully receiving monies from 1MDB or SRC,” it added.
MoF said that Malaysia had earlier received RM10.5 billion (US$2.5 billion) from Goldman Sachs in August 2020 with a further asset recovery guarantee of RM5.88 billion (US$1.4 billion).
“Soon, the government will also receive RM2.83 billion from the Ambank Group and RM336 million (US$80 million) from Deloitte PLT. All proceeds from the 1MDB asset recovery efforts including any future settlements are deposited into the Asset Recovery Trust Account under the custody of the Accountant General’s Department of Malaysia.
“These settlements will not affect or compromise Malaysia’s claims against other wrongdoers for the losses caused to 1MDB and SRC, and they will continue to be pursued through both the criminal and civil justice systems.
“The Ministry of Finance would like to thank the Attorney General’s Chambers, the Securities Commission Malaysia, Bank Negara Malaysia, the Royal Malaysian Police Force, the National Anti-Financial Crime Centre, the Malaysian Anti-Corruption Commission and the National Centre for Governance, Integrity and Anti-Corruption for their joint effort in bringing these wrongdoers to justice and recovering what rightfully belongs to the Malaysian people,” it said.