PUTRAJAYA: Funds received through the repatriation of 1Malaysia Development Bhd (1MDB) assets will be used to service its debts amounting to RM51 billion.
Finance Minister Lim Guan Eng said the figure included the interest borne and loans from the Finance Ministry of RM8.6 billion that was used to repay 1MDB’s debts to date.
“The funds will also be used to pay legal and litigation costs arising from efforts to repatriate and dispose off 1MDB assets around the world,” he said.
“The repatriation of these assets is a first step towards resolving the issues that surround 1MDB and the recovery of Malaysia’s reputation so that the country will no longer be known as a kleptocratic nation.
“The repatriation of these assets through legal processes also proves that 1MDB-related wrongdoings have occurred.”
The repatriation of the 1MDB assets from the United States, Lim said, involved Park Lane Hotel in Manhattan, New York City, with an asset value of US$139 million (RM570 million), Red Granite Film Production Company worth US$57 million, and luxury yacht Equanimity worth US$126 million.
He said Malaysia had received repatriation of 1MDB assets from Singapore worth SG$15 million (RM45 million) and expected to receive another SG$35 million.
The government, Lim added, would continue in its efforts to recover other 1MDB assets.
He said, at the same time, the government would strengthen internal controls and anti-corruption initiatives to prevent such incidents from recurring.
The minister also extended the ministry’s appreciation over efforts and cooperation of the international authorities involved in the investigation, litigation and settlement of this case.
Lim said this in response to the Attorney General’s Chambers’ announcement that US$322 million from 1MDB assets was to be returned to Malaysia following the US Department of Justice’s (DOJ) Kleptocracy Asset Recovery Initiative.
This amount, said Lim, constituted a portion of the US$4.5 billion that the DOJ found had been wrongly diverted from 1MDB.
He added that DOJ’s decision was the latest after a Singaporean court instructed that S$50 million in 1MDB related funds be returned to Malaysia.