The Malaysian government has recovered 29.7 billion ringgit ($7 billion) of funds relating to 1Malaysia Development Bhd and its former unit SRC International Sdn since the establishment of the Assets Recovery Trust Account, according to the Finance Ministry.
As of end-July, 42.17 billion ringgit has been channeled to 1MDB to finance debt repayments and fulfill the company’s commitments, the Finance Ministry said in a written parliamentary reply on Wednesday. Of the amount, 15.44 billion ringgit was channeled from the Finance Ministry and the Minister of Finance Incorporated in the form of shareholder advances or loans, while 26.73 billion ringgit came from the proceeds of 1MDB’s asset recovery, it said.
1MDB, a state investment fund that took shape under former prime minister Najib Razak, is at the center of a multi-billion dollar scandal that has spawned probes in Asia, the US and Europe. Najib, convicted of crimes linked to 1MDB, is currently serving a prison sentence but is seeking to spend the remainder of it under house arrest. He is expected to be released in 2028.
“The process to recover 1MDB and SRC funds is still ongoing and is a complicated and long process that will take years,” said the Finance Ministry.
“This is because it not only involves cooperation between several local agencies and foreign agencies from various countries, but also involves legal processes in court and settlement negotiations,” it added.
About 28.93 billion ringgit was used to pay 1MDB’s principal debt, while 13.24 billion ringgit was for interest payments and the company’s commitments, according to the ministry.
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1MDB’s remaining debt involving principal and interest payments until 2039 is 9.02 billion ringgit, comprising principal of 5 billion ringgit and interest of 4.02 billion ringgit, the ministry said, adding that for SRC International, 5.35 billion ringgit has been channeled by the government to finance principal, interest on debt and meet the company’s commitments.
