The Finance Minister in his response to questions raised in the Parliament said the remaining debt commitment of 1Malaysia Development Bhd (1MDB) is RM32.08 billion as at June 30, 2022, with an estimated foreign exchange rate of US$1 to RM4.50.
Tengku Zafrul added that the government between April 2017 and May 2022, channelled financial assistance in the form of loans or advances totalling RM10.85 billion via the Finance Ministry and Minister of Finance Incorporated (MoF Inc) to pay off 1MDB’s debt commitments and interest.
“Besides the government’s direct financial assistance, 1MDB’s debt interest is also being financed using 1MDB’s asset recovery funds kept in a trust account under the MoF, known as the Asset Recovery Trust Account,” he said.
To date,1MDB’s total funds recovered amounted to RM19.28 billion in various foreign currencies, including the United States dollar, Singapore dollar and Australian dollar.
“These funds have been and will be used for the purpose of paying off 1MDB’s debt, of which RM10.84 billion had been used to repay 1MDB’s debt. This fund still has a balance of RM8.83 billion currently (including hibah, and forex gains or losses),” he said.
The Minister said the process to recover 1MDB funds is ongoing and that it is a complicated and lengthy process that could take years, which involves collaboration between several local and foreign agencies, but it also involves both legal and negotiation settlement processes. While acknowledging that recovery of the funds has been difficult, the main goal is to maximise returns to pay off 1MDB’s debt and reduce the government’s financial burden.
Recently there were also reports that fugitive Jho Low who is wanted for his role in the 1MDB scandal had attempted to offer the Malaysian government RM1.5 billion to settle the case involvement him.
