The Malaysian government has paid RM42.5 billion to meet the debts and financial commitments of strategic investment fund 1Malaysia Development Berhad (1MDB) as of Aug 31, with another RM8.9 billion in government-guaranteed obligations remaining.
Deputy Finance Minister II Datuk Seri Amir Hamzah Azizan said the outstanding obligations comprise RM5 billion in principal and RM3.9 billion in interest on Islamic sukuk and medium-term notes (MTNs), payable until maturity in 2039.
This brings the total amount paid and still owed to RM51.4 billion.
After accounting for RM31.3 billion recovered through funds and assets, the government’s net burden is estimated at RM20.1 billion, assuming no further recoveries.
Amir Hamzah was responding to a question from Lee Chuan How (PH-Ipoh Timor) during Ministerial Question Time in the Dewan Rakyat on Wednesday. Lee had asked about the government’s target for settling 1MDB’s remaining net liabilities, including assets and claims still undergoing recovery.
Amir Hamzah said the government, through 1MDB, was intensifying efforts to negotiate compensation and recover related assets and funds through legal action and asset recovery mechanisms, both locally and overseas.
However, the amount that can ultimately be recovered will depend on court decisions, appeals, the assets that can be traced and the ability to enforce orders, particularly in foreign jurisdictions.
He stressed that amounts claimed or awarded by courts could not yet be treated as funds that the government would definitely receive.
While the government sees potential for further recoveries based on the strength of its compensation claims against those responsible, Amir Hamzah said additional recoveries would not eliminate the losses arising from 1MDB or the financial burden borne by the country.
