US to return 1MDB-linked artwork worth $38.7m to Malaysia

KUALA LUMPUR – The US Department of Justice (DOJ) has agreed to return 12 works of art worth more than US$30 million (S$38.7 million), part of the recovery of assets linked to Malaysia’s state fund, 1Malaysia Development Berhad (1MDB).

This follows two rounds of official meetings by the Malaysian authorities led by the Malaysian Anti-Corruption Commission (MACC) with the Federal Bureau of Investigation (FBI) and DOJ in Washington and New York on Dec 9 and 11.

“Among the key matters discussed was the repatriation of high-value artworks linked to former 1MDB associate Jasmine Loo. It is estimated that 12 artworks, with a combined value exceeding US$30 million, are currently under the custody of the DOJ and held by auction houses Christie’s and Sotheby’s in the United States,” the commission said in a statement on Dec 13.

“The artworks include Pablo Picasso’s L’Ecuyere et les clowns (1961), Joan Miro’s Composition (1953), William H. Bailey’s Still Life, Alexander Calder’s Studies for Sculpture and Henri Matisse’s Femme Assise,” it added.

“Following the discussions, the MACC agreed to facilitate the return of these artworks to Malaysia.”

The talks also covered developments in the US involving rapper Pras Michel, who was sentenced to 14 years’ imprisonment for receiving US$120 million, part of which was linked to 1MDB and related shell companies, the MACC said.

“In addition, the DOJ stated that assets belonging to fugitive financier Low Taek Jho, better known as Jho Low, remain in Singapore and are not included in the existing US settlement agreement,” the MACC said.

“Meanwhile, assets previously located in Hong Kong, Singapore and France have been disposed of, with proceeds to be transferred to the United States.”

Other cases discussed during the meetings included those involving Tim Leissner, Tarek Obaid and PetroSaudi, Riza Aziz, as well as law firm White & Case.

The Malaysian delegation was led by MACC Special Operations Division senior director Mohamad Zamri Zainul Abidin. It included National Financial Crime Prevention Centre (NFCC) director-general Shamshun Baharin Mohd Jamil and Attorney General’s Chambers Deputy Public Prosecutor Norinna Bahadun.

The official visit to the FBI headquarters in Washington was received by the FBI attache to Malaysia, Mr Varinder Singh. The Washington meeting was chaired by section chief Spencer Horn Chris Padurano, while discussions in New York were chaired by assistant special agent in charge Paul Roberts.

Both the FBI and DOJ reaffirmed their commitment to enhanced international coordination and cooperation with the MACC, Attorney General’s Chambers and NFCC to ensure that all remaining 1MDB-related assets overseas can be traced, seized and recovered in accordance with the law. THE STAR/ASIA NEWS NETWORK