September 30, 2022

1MDB Debt at RM32.08bn in June, Finance Minister Says

The remaining debt commitment of 1MDB was RM32.08 billion as of June 30, with an estimated exchange rate between US$1 and RM4.50, Finance Minister Tengku Zafrul Aziz said today.

He said the government had, between April 2017 and May 2022, channeled financial assistance in the form of loans or advances totaling RM10.85 billion through the Ministry of Finance and the Minister of Finance Incorporated (MoF Inc) to repay 1MDB’s debt commitments and interest.

“In addition to direct government financial assistance, 1MDB’s debt interest is also funded using 1MDB’s asset recovery funds held in a trust account under the Department of Finance, known as the Account in trust for the recovery of assets,” he said in a written response to parliament.

Tengku Zafrul said that as of June 30, the total amount of recovered funds from 1MDB was RM19.28 billion in various foreign currencies including US dollar, Singapore dollar and Australian dollar.

“These funds have been and will be used for the purpose of repaying 1MDB’s debt. As of June 30, 2022, RM10.84 billion has been used to repay 1MDB’s debt.

“This fund still has a balance of RM8.83 billion currently (including hibah and foreign exchange gains or losses),” he said.

Adding that the process of recovering funds from 1MDB was ongoing, he said it was a long and complicated process that could take years.

“This involves not only collaboration between multiple local and foreign agencies, but also legal and negotiation processes,” he said.

However, the finance minister said the government remains committed to resorting to legal action or negotiations to continue efforts to recover all misappropriated funds.

The main objective is to maximize returns to pay off 1MDB’s debt and reduce the government’s financial burden, he said.