1MDB's financial obligations stand at RM31.6 bln as of end-June 2022

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) is estimated to have outstanding financial obligations of RM31.6 billion as of end-June 2022, comprising debt principals of RM25.9 billion and projected interests or profits of RM5.7 billion.

According to the 2023 Fiscal Outlook and Federal Government Revenue Estimates report released today, the Ministry of Finance (MoF) said the outstanding debt of 1MDB has reduced to RM25.9 billion following the settlement of the debt obligation of 1MDB Energy Ltd in May 2022.

The government's initiatives to recover 1MDB's assets involve extensive joint investigation works, negotiations as well as initiation of litigation processes.

The ministry said the repatriation of the assets totalled RM19.3 billion as of end-June 2022. Several main assets that have been recovered and repatriated included seized physical assets and monies as well as settlement payments with the United States Department of Justice; proceeds from settlement with particular parties, namely financial institutions and audit firms; and the recovery of frozen cash assets from individuals and companies.

"These recovered assets, which were placed into the Asset Recovery Trust Account, have been utilised to meet 1MDB's financial obligations and debt repayment. The remaining balance in the Trust Account of about RM8.8 billion as of end-June 2022 will be prioritised for the upcoming settlement of 1MDB Energy (Langat) Ltd's bond in in October 2022," it said.

Furthermore, the former arranger of 1MDB's bond issue, Goldman Sachs, has also agreed to a settlement amounting to US$2.5 billion (US$1=RM4.63) and will provide assistance to the government in guaranteed asset recovery estimated at US$1.4 billion.

-- BERNAMA