Tuesday, July 27, 2021

AmBank pays RM1.8 billion, pushing stolen 1MDB funds recovered to RM18.1 billion

The government has so far repaid RM12.54 billion of 1MDB's debt and RM3.8 billion of SRC International's.

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Malaysia’s Assets Recovery Trust Account has received AmBank’s first payment of RM1.8 billion as partial settlement of funds embezzled from 1MDB, the finance ministry says.

It said the bank will pay the remaining RM1.5 billion in two instalments in December and July 2022.

The latest payment brings to RM18.176 billion the amount of funds seized, returned or settled in connection with the 1MDB scandal during the era of former leader Najib Razak.

In a statement, Finance Minister Tengku Zafrul Aziz said the government has so far repaid RM12.54 billion of 1MDB’s debt and RM3.8 billion of SRC International’s debt, with some RM39.66 billion and RM1.85 billion still outstanding in repayments for the two entities.

In February, AMMB Holdings Bhd which owns AmBank agreed to a RM2.83 billion global settlement on all outstanding claims and actions in relation to the involvement of the banking group in the 1MDB scandal.

The sum is in addition to the RM53.7 million penalty imposed by Bank Negara Malaysia and paid by AmBank Group.

Putrajaya has entered into a similar settlement agreement with US bank Goldman Sachs amounting to RM15.8 billion.

AmBank Group came under scrutiny over its role in the alleged theft of US$4.5 billion from 1MDB.

The state investment fund was set up in 2009 by Najib, who was found guilty of corruption and money laundering over the transfer of millions of dollars into his AmBank accounts between 2014 and 2015.

He is appealing against his 12-year jail term and RM210 million fine.

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