Finance ministry rubbishes claims Asset Recovery Trust Account funds misused

 The ministry says funds were used to repay shareholders’ advances to the Minister of Finance (Incorporated) for 1MDB and SRC International.

Last week, it was reported that the federal government paid RM42.5 billion of 1MDB’s RM51 billion in debts and commitments as of June 30, but remains liable for a further RM8.9 billion in government-guaranteed sukuk maturing in 2039. (Reuters pic)

PETALING JAYA:

The finance ministry has dismissed allegations that the Asset Recovery Trust Account funds have been misused, insisting that the monies were set aside to repay 1MDB and SRC International Sdn Bhd debts.

The ministry said the funds were used to repay shareholders’ advances to the Minister of Finance (Incorporated), which were advanced to meet the financial obligations of the two companies concerned, Bernama reported.

“The allegation that the Asset Recovery Trust Account funds were misused is unfounded given that they were used in accordance with the purpose, scope and governance set out under the trust directive,” the ministry was quoted as saying.

The ministry was responding to a question from Isam Isa (BN-Tampin) who sought an explanation over the supposed misuse of funds.

Last week, it was reported that the federal government paid RM42.5 billion of 1MDB’s RM51 billion in debts and commitments as of June 30, but remains liable for a further RM8.9 billion in government-guaranteed sukuk maturing in 2039.

To Isam’s question on the increase in non-tax revenue, the ministry said the government’s estimated revenue for 2026 is RM343.1 billion, comprising RM270.4 billion in tax revenue and RM72.7 billion in non-tax revenue.

Non-tax revenue increased by 22.9% to RM18.8 billion compared to RM15.3 billion for the same period in 2025, the ministry said.

“The amount of non-tax revenue during that period was contributed by, among others, the receipt of licences and permits, Petronas’s dividends and dividends from Bank Negara Malaysia.” - FMT