Former Finance Minister Lim Guan Eng has raised concerns over Malaysia’s ability to recover RM1.1 billion (USD 248 million) allegedly lost to money laundering following 1MDB’s recent decision to withdraw its civil claim against Riza Shahriz Abdul Aziz. The move has sparked questions about transparency and accountability in reclaiming the nation’s misappropriated funds.
RM1.1 Billion in Disputed Funds
Riza Aziz, the stepson of imprisoned former Prime Minister Datuk Seri Najib Razak, was previously sued by 1MDB in 2021. The lawsuit accused him of misusing USD 248 million from the scandal-ridden fund to finance Hollywood film productions and purchase luxury real estate.
Lim recalled that the Malaysian government had also taken action against Goldman Sachs, alleging the bank played a role in facilitating the misappropriation of USD 4.5 billion out of the USD 6.5 billion it raised for 1MDB in 2012 and 2013.
To settle the dispute, Malaysia reached an agreement with Goldman Sachs in 2020. Under the terms, the bank agreed to pay USD 2.5 billion and ensure the return of USD 1.4 billion in seized 1MDB assets. In exchange, Malaysia dropped charges against Goldman Sachs. However, Lim pointed out that to-date Goldman Sachs had not fulfilled its obligations of that settlement
Why Was the Case Against Riza Aziz Withdrawn?
Lim criticized the lack of explanation regarding 1MDB’s decision to drop its lawsuit against Riza. The Malaysian Anti-Corruption Commission (MACC) previously stated that Riza and his legal team were negotiating a global settlement for the recovery of the USD 248 million. However, no details have been provided on how or when the funds will be recovered.
With the settlement with Goldman Sachs currently disputed, public interest requires a full accounting of how Malaysians will get the US$248 million from Riza Aziz, said Lim, who is also a former Penang chief minister.
Call for Transparency in 1MDB Asset Recovery
The withdrawal of the civil case has raised fresh concerns about whether justice will be served in one of Malaysia’s biggest financial scandals. Lim stressed the need for greater transparency in the government’s efforts to reclaim stolen 1MDB funds, warning that without proper accountability, the nation risks losing billions that rightfully belong to the people.
With the dispute over the Goldman Sachs settlement and the unanswered questions surrounding Riza Aziz’s case, Malaysians await clarity on how the government plans to retrieve these lost assets.
Information Source: The Vibes
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