US DoJ remits RM1.9b more in 1MDB-seized funds to Malaysian government

Minister of Finance Datuk Seri Tengku Zafrul Abdul Aziz stated that the balance in the Trust account will be used to repay and service 1MDB and SRC’s remaining debts. — Reuters pic
Minister of Finance Datuk Seri Tengku Zafrul Abdul Aziz stated that the balance in the Trust account will be used to repay and service 1MDB and SRC’s remaining debts. — Reuters pic

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KUALA LUMPUR, May 12 — The US Department of Justice (DoJ) has remitted RM1.9 billion of seized funds related to the 1Malaysia Development Berhad’s (1MDB) financial scandal to the Malaysian government. 

The funds were directly channelled to Malaysia’s Assets Recovery Trust Account managed by the Accountant General’s Department, and so far, the Trust account has received RM16.05 billion of seized and repatriated 1MDB funds. 

In a statement today, Minister of Finance Datuk Seri Tengku Zafrul Abdul Aziz stated that the balance in the Trust account will be used to repay and service 1MDB and its former subsidiary SRC International Sdn Bhd's remaining debts. 

“The current balance is sufficient to service 1MDB’s debt obligations for 2021 and 2022 only. This balance excludes the settlement amount of RM2.83 billion that will be received from the Ambank Group and RM336 million 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 Government’s Guarantee and Letter of Support when these debts were created,” he said. 

To date the government has repaid RM12.4 billion of 1MDB’s debt and RM3.1 billion of SRC’s debt with the balance of debts still outstanding, comprising the principal and coupon/profit/interest of bonds, sukuk and term loans, currently of RM39.8 billion for 1MDB and RM2.57 billion for SRC. 

Tengku Zafrul also thanked both the US DoJ and its Malaysian counterpart for their earnest cooperation to see the matter through.

“This recovery would not have been achieved without the excellent cooperation between the Government of Malaysia and the United States (US) Government, 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,” Tengku Zafrul added. 

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

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