Govt has no target year to resolve 1MDB claims, recover assets

 The government had paid RM42.5 billion to meet 1MDB-related debts and commitments as of Aug 31.

Finance minister II Amir Hamzah Azizan said the timeframe for resolving claims and recovering assets related to 1MDB also depends on court decisions and enforcement proceedings, in Malaysia as well as overseas. (Reuters pic)

KUALA LUMPUR:

The government has not set a target year to resolve outstanding claims and asset recovery efforts related to 1MDB, says finance minister II Amir Hamzah Azizan.

He said 2039 was the maturity year for the principal of government-guaranteed 1MDB-related Islamic medium-term notes (IMTN) sukuk, but this did not constitute a deadline for settling all claims or recovering assets.

“The maturity period is distinct from the timeframe for resolving all claims and recovering 1MDB funds and assets.

“Under the current schedule, 2039 is the maturity date for the IMTN sukuk principal, not the deadline for settling claims and recovering assets,” he said in the Dewan Rakyat today.

He was responding to Howard Lee (PH-Ipoh Timor), who asked about the target date for settling 1MDB’s remaining net liabilities and outstanding recovery claims, as well as the timeline for fully discharging the government’s obligations.

Amir said the timeframe for resolving claims and recovering assets also depended on court decisions and enforcement proceedings, both in Malaysia and overseas.

He said the government’s immediate priority was to meet its financial obligations according to schedule while continuing efforts to recover as much of the misappropriated funds as possible.

Amir said the government had paid RM42.5 billion to meet 1MDB-related debts and commitments, including principal, interest and other costs, as of Aug 31, 2026.

The remaining commitments under the government-guaranteed IMTN sukuk amount to RM8.9 billion, comprising RM5 billion in principal and RM3.9 billion in interest up to maturity in 2039.

Amir said that after accounting for RM31.3 billion in fund and asset recoveries, the government’s net burden was estimated at RM20.1 billion, assuming no further recoveries.

Amir also cautioned that amounts claimed or awarded by courts could not yet be regarded as sums certain to be recovered.

“The actual amount that can be returned to the country depends on court decisions, appeal proceedings, the assets that can be traced and the ability to enforce court orders, particularly overseas,” he said. - FMT