22 suits linked to 1MDB scandal filed against entities, individuals

1MDB and its former subsidiary SRC International Sdn Bhd have filed a total of 22 civil suits against entities and individuals whom they claim have been unjustly enriched by the wrongful receipt of money from them.

The finance ministry, in a statement today, said the writs – six by 1MDB and 16 by SRC International – were filed on May 7 for the recovery of assets with a combined total in excess of RM96.6 billion (US$23 billion), including some RM300 million against various local parties.

The writs filed by 1MDB are against a total of nine entities including two foreign financial institutions and 25 individuals for wrongdoings including breach of contractual, statutory, common law and fiduciary duties; breach of trust and fraud.

Those filed by SRC International are against 15 individuals and eight entities for wrongdoings including abuse of power, breach of fiduciary duties in public office, breach of trust and conspiracy.

“Following significant and successful settlements with Goldman Sachs, AmBank Group and Deloitte PLT, the government’s recovery efforts are now focused on pursuing other wrongdoings 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,” Finance Minister Tengku Zafrul Aziz said.

“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.”

Goldman Sachs had agreed in October last year to pay US$2.9 billion in penalties to settle criminal charges in the 1MDB scandal, the largest US fine ever in a corruption case.

Goldman Sachs helped raise US$6.5 billion for the sovereign wealth fund. The US Department of Justice said more than US$4.5 billion was stolen from 1MDB by high-level officials at the fund and their associates between 2009 and 2015.

In February, meanwhile, AMMB Holdings Bhd agreed to a RM2.83 billion global settlement on all outstanding claims and actions in relation to the involvement of AmBank Group in the 1MDB matter.

The settlement amount was in addition to the RM53.7 million penalty imposed by Bank Negara Malaysia and paid by AmBank Group.

In March, Deloitte PLT agreed to a settlement of RM324 million to resolve all claims related to its fiduciary duty on auditing the accounts of 1MDB and SRC International for the 2011-2014 period.

The ministry today reiterated that 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.”