KL says US has returned $611m of recovered 1MDB funds

KUALA LUMPUR • Malaysia yesterday said the US Department of Justice has returned RM1.9 billion (S$611 million) of funds recovered from assets related to 1MDB.

Investigators in Malaysia and the United States say at least US$4.5 billion (S$6 billion) was stolen from the sovereign wealth fund between 2009 and 2014, in a wide-ranging scandal that has implicated high-level officials, banks and financial institutions around the world.

The US has been returning funds it has recovered from seized assets that were allegedly bought with money stolen from 1Malaysia Development Berhad.

Malaysia has so far received RM16.05 billion of seized and repatriated 1MDB funds, the Finance Ministry said in a statement.

The government plans to use the recovered funds to repay liabilities of 1MDB and its former unit SRC.

1MDB has RM39.8 billion in outstanding debt, while SRC has RM2.57 billion of remaining debt, the ministry said.

The funds - held in a special trust account - are sufficient to service 1MDB's debt obligations for 2021 and 2022, the ministry said. The account does not include the US$700 million settlement reached with Malaysian banking group AmBank and US$60 million settlement with audit firm Deloitte earlier this year.

REUTERS

A version of this article appeared in the print edition of The Straits Times on May 13, 2021, with the headline 'KL says US has returned $611m of recovered 1MDB funds'. Subscribe