Malaysia estimates remaining net 1MDB burden at RM20.1 billion
The government has paid RM42.5 billion towards 1MDB obligations since April 2017, while asset recovery efforts will continue.
Malaysia’s government faces an estimated RM20.1 billion net financial burden linked to 1Malaysia Development Bhd (1MDB) if no additional funds or assets are recovered, according to the Ministry of Finance.
The ministry put total obligations at RM51.4 billion and recoveries of funds and assets at RM31.3 billion. It provided the figures in a written parliamentary response to Lee Chuan How (PH-Ipoh Timor), who asked about preventing similar liabilities from falling on taxpayers and protecting recovery claims.
Since taking responsibility for 1MDB’s debt and financial commitments in April 2017, the government has paid RM42.5 billion. Of that, RM27.7 billion covered principal, while RM14.8 billion went towards interest and other commitments.
Government-guaranteed Islamic medium-term notes carry outstanding commitments of RM8.9 billion through their maturity in 2039. This comprises principal of RM5 billion and interest of RM3.9 billion.
The ministry said a criminal sentence or pardon does not automatically end civil proceedings to recover misappropriated money. Civil and criminal proceedings have different legal grounds and evidentiary processes, it said.
Any implications of a sentencing or pardon decision under Article 42 of the Federal Constitution must be considered against its scope and applicable laws, the ministry added. It said recovery efforts would continue through available legal channels, with the priority of settling 1MDB obligations and reducing the government’s financial burden.
