PETALING JAYA: The government has recovered RM31.3 billion in funds through its 1MDB asset recovery efforts to date, the Finance Ministry (MOF) said.
It said all recovered funds were managed through a trust account under the ministry and used exclusively to meet 1MDB-related debt obligations and commitments.
“The management through this dedicated account allows the receipt and utilisation of funds to be monitored clearly and transparently.
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“As of Aug 31, the government had paid RM42.5 billion to meet 1MDB-related commitments, including principal, interest, legal costs and operational expenses.”
MOF said this in a written parliamentary reply to a question from Azli Yusof (PH-Shah Alam) on measures to improve public fund management following the Auditor-General’s Report on leakages, the latest status of national asset recovery linked to major financial scandals, and the management of recovered funds.
It also said the government would still have to bear RM20.1 billion in outstanding obligations if no further funds were recovered.
“The government will continue to take legal action and strengthen international co-operation to maximise the recovery of the remaining 1MDB assets that were misappropriated.
“These efforts are important to reduce the country’s financial burden and ensure that the interests of the people continue to be protected.”
On SRC International Sdn Bhd, the ministry said the government had borne about RM5.35 billion to meet the company’s RM5.66 billion obligations to the Retirement Fund Inc (KWAP).
“The remaining RM310 million was covered through SRC’s internal funds, with the final payment made on March 28, 2022.
“The government’s payments were made following SRC’s loans from KWAP being guaranteed by the federal government.
“As SRC was unable to fully meet its repayment obligations, the government was required to fulfil its responsibility as guarantor to ensure that its obligations to KWAP were settled.”
On FELDA, the government had approved RM9.9 billion in government guarantees to enable the agency to obtain financing from local financial institutions and the capital market, including GGRC-i.
The ministry said the financing was intended to fund FELDA Group’s projects and investments, as well as its recovery plan, following Cabinet decisions on Oct 14, 2020 and Sept 24, 2021.
The government also agreed to provide an annual grant of RM990 million for 10 years to fund annual principal repayments for the guaranteed sukuk.
“Of the RM9.9 billion in federal government guarantees approved, FELDA has obtained RM8.92 billion in government-guaranteed financing, while the remaining RM980 million in guaranteed sukuk has yet to be issued,” it said.
As of Sept 30, FELDA’s outstanding loans guaranteed by the government stood at RM5.88 billion, after taking into account RM3.04 billion in principal repayments.
Meanwhile, the ministry said a Royal Commission of Inquiry into Lembaga Tabung Haji (TH) had found irregularities in its previous investment management, including manipulation of investment suitability reports, creative accounting and misleading representations to conceal information.
It said losses from problematic investments before 2018 were estimated at nearly RM13 billion.
This comprised RM10.2 billion in a government bailout in 2018 through UJSB and RM2.6 billion in impairment losses or net losses borne by TH between 2018 and 2025 for investments that remained under management.
Of the 14 problematic investments identified, seven had suffered total losses and were fully impaired.
“For the seven other problematic investments, TH has implemented various recovery measures to protect the interests of depositors and recover their funds,” it said.
“Some of these investments have been successfully recovered, while recovery efforts for the remaining investments are still ongoing.”
