Malaysian 1MDB wealth fund and former unit file lawsuits to recover £16.3bn

world
Malaysian 1Mdb Wealth Fund And Former Unit File Lawsuits To Recover £16.3Bn Malaysian 1Mdb Wealth Fund And Former Unit File Lawsuits To Recover £16.3Bn
A billboard for state investment fund 1 Malaysia Development Berhad (1MDB) at the fund’s flagship Tun Razak Exchange development in Kuala Lumpur, © AP/Press Association Images
Share this article

By Associated Press Reporter

Malaysian sovereign wealth fund 1MDB and a former subsidiary have filed 22 lawsuits to recover assets worth more than 23 billion US dollars (£16.3 billion) from various institutions and individuals, the Finance Ministry said.

1MDB was set up by former prime minister Najib Razak in 2009 but it accumulated billions in debts and sparked investigations in the US and several other countries.

US investigators allege that more than 4.5 billion dollars (£3.2 billion) was stolen from 1MDB and laundered by Najib’s associates.

Finance minister Zafrul Abdul Aziz said the government’s recovery efforts are now focused on “pursuing other wrongdoers” who have caused losses to 1MDB and SRC International following successful settlements with US firm Goldman Sachs, Malaysia’s AmBank Group and Deloitte.


 

1MDB earlier this month filed six suits against nine entities including two foreign financial institutions and 25 people for various alleged violations including breach of trust, fraud and negligence.

Advertisement

SRC filed 22 lawsuits against 15 individuals and eight entities over similar alleged wrongdoings.

The two companies contend those entities and people were “unjustly enriched by wrongfully receiving monies from 1MDB or SRC”, the ministry said in a statement that did not name any of the entities or individuals.

“The government will not rest until all those involved are made fully accountable for the wrongdoings caused to the country through their involvement” in 1MDB and SRC, Mr Zafrul said in a statement.

Malaysia received a 10.5 billion ringgit (£1.8 billion) settlement from Goldman Sachs last August.

The ministry said the government will also receive 2.83 billion ringgit (£488 million) from the Ambank Group and 336 million ringgit (£58 million) from Deloitte.


The 1MDB saga sparked public anger that led to the defeat of Najib’s long-ruling coalition in 2018 elections.

But it has regained power by joining an unelected alliance that took over last year.

Najib was found guilty last year and sentenced to 12 years in jail in the first of several corruption trials linked to the 1MDB scandal.

He is appealing against the sentence.

Read More

Want us to email you top stories each lunch time?

Download our Apps
© BreakingNews.ie 2021, developed by Square1 and powered by PublisherPlus.com