(Updated)

Malaysia receives RM340.92m from KPMG as 1MDB settlement

Malaysia receives RM340.92m from KPMG as 1MDB settlement
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KUALA LUMPUR (Jan 13): The Ministry of Finance (MOF) announced on Thursday (Jan 13) that the government has received RM340.92 million (US$80 million) from KPMG, which was deposited into Malaysia’s Assets Recovery Trust Account.

This followed KPMG's agreement to settle the civil suit (announced on Sept 16, 2021) filed by 1Malaysia Development Bhd (1MDB) against the former.

In a statement, the MOF said that to date, the trust account under the custody of the Accountant General’s Department of Malaysia has received a total of RM19.138 billion in connection with the 1MDB financial scandal.

"These funds have been/will be used to settle the outstanding debts of 1MDB," MOF said.

On Thursday (Jan 13), Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said in a statement that the government has repaid RM13.3 billion of 1MDB’s debt so far.

As at Dec 31, 2021, 1MDB’s outstanding debt comprising principal besides coupon and profit payments for conventional and Islamic bonds respectively, amounted to RM38.81 billion, said Tengku Zafrul.

"However, the current balance of the Trust Account is sufficient to pay off only the principal amount of the bonds for 2022.

"Once all the Trust Account funds are utilised, the government will continue to bear the obligation to pay the balance of 1MDB’s debts, whose issuance was backed by Government Guarantee and Letter of Support,” he added.

MOF said moving forward, the government is committed to the asset recovery, and will always ensure adequate fund allocation to settle 1MDB's debts to manage the national financial burden created by the scandal.

The ministry also stated its appreciation to the Attorney General's Chambers, Securities Commission Malaysia, Bank Negara Malaysia, Royal Malaysian Police, National Financial Crime Prevention Centre, Malaysian Anti-Corruption Commission and the Governance, Integrity and Anti-Corruption Centre for their efforts in helping the government's 1MDB asset recovery endeavour.

Chong Jin Hun