‘Repatriated funds will be used to repay debts’

The funds received through the repatriated 1Malaysia Development Bhd (1MDB) assets will be used to service its debt of RM51 billion, says Finance Minister Lim Guan Eng.

He said the amount includes the amount of interest borne of RM10.08 billion, as well as loans from the Ministry of Finance (MoF) of RM8.6 billion that was used to repay 1MDB’s debt to date.

“The funds will also be used to pay legal and litigation costs arising from efforts to repatriate and dispose off 1MDB assets around the world,” he said in a statement yesterday.

The Attorney-General Chamber’s was reported as saying that Malaysia has recovered 1MDB assets worth US$322 million (RM1.3 billion) under the Kleptocracy Asset Recovery Initiative of the US Department of Justice (DOJ). The DOJ’s decision was the latest a er a Singaporean court instructed funds related to 1MDB amounting SG$50 million to be returned to Malaysia. Lim said the repatriation of these assets is a first step towards resolving the issues that surround 1MDB and the recovery of Malaysia’s reputation so that the country will no longer be known as a kleptocratic nation.

“The repatriation of these assets through legal processes also proves that 1MDB-related wrongdoings have occurred,” said Lim, adding that the government will continue its efforts to recover other 1MDB assets.

At the same time, he said the government will strengthen internal controls and anticorruption initiatives to prevent such incidents from recurring. — Bernama