Wednesday, October 20, 2021

RM1.9 billion in seized 1MDB funds remitted from DoJ

The Assets Recovery Trust Account has now received a total of RM16.05 billion in seized and repatriated 1MDB funds.

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The US Department of Justice (DoJ) has remitted RM1.9 billion (US$452,363,867.40) of funds seized in matters related to 1MDB into Malaysia’s Assets Recovery Trust Account, the finance ministry announced today.

In a statement, it said the trust account which is under the Accountant-General’s Department of Malaysia had received a total of RM16.05 billion in seized and repatriated 1MDB funds.

“Any balance in the trust account will be utilised to primarily repay and service 1MDB and SRC’s remaining debts,” it said, referring to former 1MDB unit SRC International.

It said so far, the government has repaid RM12.4 billion of 1MDB’s debt and RM3.1 billion of SRC International’s.

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

In the statement, Finance Minister Tengku Zafrul Aziz said the current balance is only enough to service 1MDB’s debt obligations for 2021 and 2022.

“This balance excludes the settlement amount of RM2.83 billion that will be received from AmBank Group and RM336 million from Deloitte PLT,” he added.

“Negotiations are also 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 the government’s recovery efforts are focused on parties who have caused losses to 1MDB and SRC International during the execution of their duties as well as those who have wrongfully received money from SRC International “disguised” as corporate social responsibility activities.

“All those involved will be made fully accountable for the wrongdoings caused to the country through their involvement in 1MDB and/or SRC.”

This follows 22 civil suits recently filed by 1MDB and SRC International against entities and individuals accused of having been unjustly enriched by the wrongful receipt of money from them.

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, including some RM300 million against various local parties.

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