Malaysia has recovered US$7bil in funds linked to 1MDB
PETALING JAYA : The Malaysian government has recovered RM29.7 billion (US$7 billion) of funds relating to 1Malaysia Development Bhd (1MDB) and its former unit SRC International Sdn Bhd since the establishment of the Assets Recovery Trust Account, according to the finance ministry.
As of the end of July, RM42.17 billion has been channeled to 1MDB to finance debt repayments and fulfill the company's commitments, the finance ministry said in a written parliamentary reply yesterday.
'Of the amount, RM15.44 billion was channeled from the finance ministry and the Minister of Finance Incorporated in the form of shareholder advances or loans, while RM26.73 billion came from the proceeds of 1MDB's asset recovery,' it said.
1MDB, a state investment fund that took shape under former prime minister Najib Razak, is at the centre of a multi-billion dollar scandal that has spawned probes in Asia, the US and Europe.
Najib, convicted of crimes linked to 1MDB, is currently serving a prison sentence but is seeking to spend the remainder of it under house arrest. He is expected to be released in 2028.
'The process to recover 1MDB and SRC funds is still ongoing and is a complicated and long process that will take years,' said the finance ministry.
'This is because it not only involves cooperation between several local agencies and foreign agencies from various countries, but also involves legal processes in court and settlement negotiations,' it added.
Other findings from the finance ministry's reply are:
About RM28.93 billion was used to pay 1MDB's principal debt, while RM13.24 billion was for interest payments and the company's commitments.
1MDB's remaining debt, involving principal and interest payments until 2039 is RM9.02 billion, comprising principal of RM5 billion and interest of RM4.02 billion.
For SRC International, RM5.35 billion has been channeled by the government to finance principal, interest on debt and meet the company's commitments.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Powering change and driving down costs
Smart initiative: Rooftop solar panels doubling as shaded parking, generating clean energy while keeping cars cool at a mall in Cheras. — YAP CHEE HONG/The Star PETALING JAYA: The transition to solar energy is gaining momentum in Malaysia, driven by the dual goal of reducing electricity costs and meeting green energy targets. The decreasing cost of solar panels has made this switch more appealing to both residential and commercial consumers. The primary reason for adopting solar is the significant increase in electricity tariffs for medium and high-voltage users, said Solar service provider AQ Energy (Max Bell Sdn Bhd) director Lum Chean Jeeng. He said consumers are looking for ways to combat rising costs. Lum points to Environmental, Social and Governance (ESG) factors as a key driver, especially for companies dealing with European partners who require sustainability reporting. While the initial investment for a solar PV system can be substantial, the return on investment is typically between two and five years, depending on the system's size and upfront cost. Financing is often a challenge for many Malaysians, so solar providers are offering various schemes to make it more accessible. Businesses with high electricity consumption, such as factories and cold storage facilities, are among the most enthusiastic adopters of solar technology. According Agro Voltec Enterprise director Sri Suthesh, a major challenge has been the high cost of the initial deposit, but companies view it as a worthwhile long-term investment. A new challenge for households and government buildings is the recent expiration of the Net Energy Metering (NEM) 3.0 scheme on June 30. This scheme allowed consumers to fully offset their electricity consumption by exporting excess solar energy to the grid. On Aug 6, Energy Transition and Water Transformation Ministry deputy secretary general (energy) Mareena Mahpudz said the government is still finalising a replacement for the NEM 3.0 scheme, which might be a hybrid between the NEM and self-consumption (SelCo), or even a new programme altogether. Federation of Malaysian Business Associations vice-chairman Nivas Ragavan said there had been a gradual increase in solar adoption among members, particularly in the manufacturing, logistics and hospitality sectors. However, less than 10% currently use solar. While recent tariff adjustments have sparked more interest, many are still in the planning stages. Businesses that have adopted the NEM scheme reported bill reductions of 20% to 40%. The main obstacles are still high initial costs, long payback periods, and a lack of awareness and financing options. The NEM scheme, first introduced in 2016, was designed to encourage the use of renewable energy. Under this programme, solar-generated electricity is used first, and any excess is sold back to Tenaga Nasional Bhd at the prevailing cost. The NEM 3.0 programme, which ran until June 30, offered additional quotas to further boost solar adoption.
The Star
3 hours ago
- The Star
Najib betrayed public's trust, court told
KUALA LUMPUR: The High Court here was told that former prime minister Datuk Seri Najib Razak betrayed the public's trust by misusing RM42mil from SRC International Sdn Bhd, funds that were meant to benefit Malaysia's energy future and civil service pensioners. Counsel Kwan Will Sen, representing SRC International and its subsidiary, Gandingan Mentari Sdn Bhd, in a civil suit against Najib, said it has been 10 years since the money ended up in Najib's personal accounts and now, the two companies want it returned. Kwan made these remarks while delivering the opening statement on the first day of the trial in the civil suit filed by SRC International and Gandingan Mentari against Najib, who is the sole defendant. 'Three courts, namely the High Court, Court of Appeal and Federal Court, have already found him criminally guilty of these very acts beyond a reasonable doubt. 'Najib was the finance minister at the time and had full control over SRC International. He held key positions, including that of adviser emeritus. 'As such, no significant transaction occurred without his knowledge or consent,' he said yesterday, Bernama reported. Kwan added that evidence will show the RM42mil was transferred from SRC International and ultimately ended up in Najib's personal bank accounts. Of this sum, RM32mil was immediately transferred to two companies that had previously covered shortfalls in Najib's accounts. 'These transfers were made pursuant to instruction letters bearing his personal signature. 'The remaining RM10mil was spent through personal cheques issued by Najib himself. 'We say that the money trail is clear, the documentary evidence is overwhelming, and Najib's own sworn admissions are damning. 'We will prove our case under three complementary causes of action: knowing receipt, dishonest assistance and misfeasance in public office. 'On any of these grounds, justice demands that these public funds be returned to their rightful owners, the Malaysian people,' Kwan said. The court also heard testimony from the first witness, former chief executive officer of Yayasan Rakyat 1Malaysia, Ung Su Ling, 57, whose appointment was approved by Najib. The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan is set to continue on Nov 6. The lawsuit, filed in May 2022, accuses Najib of breach of fiduciary duties, knowing receipt of funds, dishonest assistance, tort of misfeasance in public office, and abuse of power in relation to the misappropriation of SRC International funds.
Free Malaysia Today
5 hours ago
- Free Malaysia Today
Ong Beng Seng's PR status in Singapore under review
Malaysian tycoon Ong Beng Seng was fined the maximum amount of S$30,000 on Friday after he pleaded guilty to the charge of abetting in obstruction of justice. (File pic) SINGAPORE : Malaysian billionaire Ong Beng Seng's status as a Singapore permanent resident will be reviewed by the authorities following his conviction and sentencing for abetting obstruction of justice in a case linked to a former minister, according to local media reports. An immigration spokesperson told the Straits Times on Friday that the department would review the status of Singapore permanent residents who have been convicted of an offence, Bernama reported. Ong, 79, was fined the maximum amount of S$30,000 on Friday after he pleaded guilty to the charge on Aug 4. A second charge, of instigating former transport minister S Iswaran to obtain flights and a hotel stay from him, was taken into consideration for sentencing. Principal district judge Lee Lit Cheng agreed with both the prosecution and defence that judicial mercy should be exercised in this case due to Ong's ill health. He suffers from an incurable form of cancer that has damaged his skeletal system and severely compromised his immune system. He also suffers from other complications that further increase his risk of infection and place him at risk of gangrene. Ong is the founder of Singapore-based Hotel Properties Limited which is a shareholder of various businesses, including Hard Rock resorts and Four Seasons resorts across Europe and Asia.
