RM27.17bil linked to 1MDB recovered as of September, says Finance Ministry

15 October 2024

KUALA LUMPUR: The government has recovered a total of RM27.17bil related to 1Malaysia Development Bhd (1MDB) as of September 30, 2024, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

As Amir Hamzah was unwell due to inflammation of the throat or laryngitis,

his speech was read on his behalf by Youth and Sports Minister Hannah Yeoh.

The funds have been used to repay 1MDB’s debt and cover other expenses permitted under the trust account directive, he said.

"Currently, the trust account has an outstanding balance of RM3.04 billion. The government will continue its efforts to recover all misappropriated assets related to 1MDB in order to pay off the remaining 1MDB debt according to the stipulated timeline," Amir Hamzah told the Dewan Rakyat on Tuesday (October 15), while wrapping up the debate on the Auditor General’s Report (LKAN) 3/2024 concerning the Federal Government’s Financial Statements for 2023.

According to a Bernama report, Amir Hamzah said that the financing guarantee for 1MDB of up to RM5bil was approved by the Cabinet on April 1, 2009.

He stated that this financing was carried out through the sukuk issuance of Islamic Medium Term Notes (IMTN) on May 29, 2009, with a maturity period of 30 years at an interest rate of 5.75 per cent per annum.

"As of September 2024, the total interest or coupon paid is RM4.312bil,” Amir Hamzah said.

Yesterday, the Auditor General’s Report 3/2023 reported that the federal government had allocated grants amounting to RM39.74bil to 1MDB from 2019 to 2023 for principal repayment and other expenses, including bond interest and coupon payments.

The federal government also needs to allocate RM9.46bil, which consists of RM5bil for the principal of the IMTN maturing on May 27, 2039, and RM4.46bil for IMTN coupon payments from 2024 to 2039 (15 years and 6 months).