Malaysia's finance ministry puts net 1MDB burden at RM20.1 billion
The figure holds only if no more money or assets are recovered later, according to Bernama. Total obligations of RM51.4 billion are offset by RM31.3 billion…
Malaysia's Ministry of Finance (MOF) puts the government's remaining net financial burden from 1Malaysia Development Bhd (1MDB) at RM20.1 billion, a figure that holds only if no more money or assets are recovered later, according to Bernama.
How the figure was reached
The MOF said the government's total financial obligations linked to 1MDB come to RM51.4 billion. Recovered funds and assets worth RM31.3 billion are then taken off that sum.
The government began taking on 1MDB's debt obligations and financial commitments in April 2017. Since then it has paid out RM42.5 billion, made up of RM27.7 billion in principal and RM14.8 billion in interest and other commitments.
RM8.9 billion remains due on the Islamic medium term notes (IMTN) that carry a government guarantee, split into RM5 billion of principal and RM3.9 billion of interest. The commitment runs until the notes mature in 2039.
Civil claims continue
Lee Chuan How (PH-Ipoh Timor) posed the question, and the ministry supplied the details through a written answer posted on the parliament website. His question concerned fresh safeguards to keep liabilities such as those of 1MDB from being passed to taxpayers, and also guarantees that criminal sentencing outcomes for those responsible would not undermine the process of pursuing claims.
According to the MOF, the government stays dedicated to chasing claims and reclaiming assets connected with 1MDB. In its words, "Any developments concerning criminal sentencing or the granting of a pardon to an individual do not, in themselves, terminate civil claims aimed at recovering misappropriated funds."
The ministry said civil claims rest on a different basis of action and a different evidentiary process from criminal proceedings. The ministry added that any sentencing or pardon decision made pursuant to Article 42 of the Federal Constitution has to be assessed in light of how far that decision extends and which laws apply.
The right of the government and 1MDB to pursue civil claims should be judged on the grounds for the claims, the evidence and the court orders in those proceedings. Any asset forfeiture action is subject to the legal provisions and conditions that govern it.
"The government's stance is firm: efforts to recover state funds will continue through available legal channels, while respecting the jurisdiction of the courts and the power of pardon as provided for under the Federal Constitution," the ministry said. Recovering the largest possible amount of money is the government's main aim, the MOF said, so that 1MDB's obligations can be met, the financial burden on the country eased and the people's interests protected.
