Malaysia aims to recover about US$5 billion in 1MDB-linked assets

Malaysia aims to recover about US$5 billion in 1MDB-linked assets

Men walk past a 1Malaysia Development Berhad (1MDB) billboard at the fund's flagship Tun Razak
Men walk past a 1Malaysia Development Berhad (1MDB) billboard at the fund's flagship Tun Razak Exchange development in Kuala Lumpur, Mar 1, 2015. (File photo: Reuters/Olivia Harris)

KUALA LUMPUR: Malaysia is looking to recover about US$5 billion worth of foreign assets linked to state fund 1Malaysia Development Berhad (1MDB), set up in 2009 by then prime minister Najib Razak and the subject of money laundering probes, an anti-graft official said on Friday (Jun 21).

Malaysian and US investigators believe about US$4.5 billion was misappropriated from 1MDB by high-level officials of the fund and associates between 2009 and 2014.

But many of the assets sought by investigators may have since increased in value, and include those linked to 1MDB's former subsidiary SRC International, Azam Baki, a deputy commissioner at the Malaysian Anti-Corruption Commission (MACC), told reporters.

"The amount is about US$5 billion ... in many countries, all related to 1MDB," said Azam, adding a separate taskforce will be set up to recover the assets.

At least six countries, including Singapore and Switzerland, are investigating alleged graft and money laundering at 1MDB. SRC is also the subject of graft and money-laundering probes in Malaysia.

READ: Malaysian police raid Deloitte office in 1MDB probe

READ: US begins return of US$200 million in 1MDB funds to Malaysia

Najib has been charged with 42 criminal offences related to losses at 1MDB and other state entities. He has consistently denied wrongdoing.

Investigators allege about US$1 billion in 1MDB funds flowed into the bank accounts of Najib, who was ousted in a general election last year amid widespread public anger over the scandal.

On Friday, authorities filed civil forfeiture suits to seize RM270 million (US$65 million) disbursed from an account belonging to Najib, MACC's chief commissioner Latheefa Koya said.

The suits were filed on 41 people, companies and entities, most of them linked to Najib's party, the United Malays National Organisation, Latheefa said.

Malaysia has so far recovered about RM990 million in 1MDB funds, including cash voluntarily returned by those under probe for receiving illegal proceeds, she added.

Since 2016, the US Department of Justice has filed forfeiture lawsuits on about US$1.7 billion in assets allegedly bought with stolen 1MDB funds, including a private jet, luxury real estate and jewellery.

Last month, the United States began returning to Malaysia some US$200 million recovered from the sale of seized assets.

Source: Reuters/zl

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