Govt’s Net Financial Burden Related To 1MDB Estimated At RM20.1 Bln -- MOF

KUALA LUMPUR, Oct 22 (Bernama) -- The remaining net financial burden borne by the government in relation to 1Malaysia Development Bhd (1MDB) is estimated at RM20.1 billion, assuming no further recovery of funds or assets in the future.

According to the Ministry of Finance (MOF), this figure accounts for the government’s total financial obligations related to 1MDB — amounting to RM51.4 billion — after deducting recovered funds and assets totalling RM31.3 billion.

“Since the government began assuming the debt obligations and financial commitments related to 1MDB in April 2017, it has settled payments totalling RM42.5 billion, comprising RM27.7 billion in principal payments, and RM14.8 billion in interest and other commitments,” the MOF said in a written reply on the parliament website today to a question from Lee Chuan How (PH-Ipoh Timor) regarding new mechanisms to ensure that liabilities similar to those of 1MDB are not shifted onto taxpayers, as well as assurances that the claims process will not be compromised by developments concerning the criminal sentencing of the perpetrators.

The ministry said the outstanding commitment for government-guaranteed Islamic medium term notes (IMTN) amounts to RM8.9 billion, comprising RM5 billion in principal and RM3.9 billion in interest, lasting until the maturity date in 2039.

Regarding efforts to recover funds, the MOF affirmed that the government remains committed to pursuing claims and asset recovery efforts related to 1MDB.

“Any developments concerning criminal sentencing or the granting of a pardon to an individual do not, in themselves, terminate civil claims aimed at recovering misappropriated funds.

“Civil claims have a different basis of action and evidentiary process compared to criminal proceedings,” the ministry said.

The MOF noted that, consequently, the implications of any decision regarding sentencing or a pardon under Article 42 of the Federal Constitution must be examined based on the scope of that decision and the applicable laws.

“The right of the government and 1MDB to pursue civil claims should be assessed based on the grounds for the claims, the evidence, and the court orders within those proceedings; meanwhile, any asset forfeiture action is subject to the legal provisions and conditions that govern such measures.

“The government’s stance is firm: efforts to recover state funds will continue through available legal channels, while respecting the jurisdiction of the courts and the power of pardon as provided for under the Federal Constitution,” the ministry said.

The MOF noted that the government’s priority is to maximise the recovery of funds to settle 1MDB’s obligations, reduce the nation’s financial burden, and safeguard the interests of the people.

-- BERNAMA