Malaysia is set to recover billions more in misappropriated funds linked to the 1Malaysia Development Berhad (1MDB) scandal, with efforts now targeting individuals previously found to have received stolen money, including PetroSaudi chief executive Tarek Obaid and members of fugitive financier Jho Low’s family.
According to Berita Harian, the Malaysian Anti-Corruption Commission (MACC) is pursuing about RM600 million believed to be linked to Tarek Obaid, while accounts held by Jho Low’s family are also expected to be returned to the government soon. Overall, investigators anticipate around RM5 billion could be repatriated in the next phase of recovery.
MACC chief commissioner Tan Sri Azam Baki said the total misappropriated 1MDB funds detected so far amount to approximately RM42 billion, with roughly RM30 billion already recovered. “This means there is still a balance of RM12 billion, but we expect to recover around RM5 billion more. I want it done quickly,” he said during a podcast recording of Borak Hari Ini.
Azam added that while there is no fixed timeline, immediate steps are underway, with initial recoveries estimated at RM2.8 million from several individuals.
Investigators continue tracing the remaining RM12 billion allegedly siphoned from the former sovereign fund. To date, the total value of recovered assets stands at RM31.19 billion.
1MDB, established in 2009 to drive national development, was closely associated with Jho Low. Former prime minister Datuk Seri Najib Razak, who chaired the fund’s advisory board, was later jailed for charges linked to the scandal.
Tarek Obaid, a Swiss-Saudi businessman and former PetroSaudi International Ltd chief executive, was sentenced by the Swiss Federal Criminal Court in August 2024 to seven years’ imprisonment for his role in the misappropriation. His associate, Geneva-based director Patrick Mahony, received a six-year sentence.
In Malaysia, the Kuala Lumpur High Court barred Tarek Obaid and two companies from accessing 41 pieces of jewellery valued at £9 million, linked to 1MDB funds, under anti-money laundering laws.
The 1MDB scandal is described by the US Department of Justice as its largest-ever kleptocracy case, alleging that US$4.5 billion was diverted through offshore accounts and shell companies tied to Jho Low. Court filings stated the funds were used to acquire luxury properties, a private jet, a superyacht, high-end jewellery, and to finance the 2013 Hollywood film The Wolf of Wall Street.
