Finance Ministry confirms 1MDB, SRC filed civil suits for a combined US$23b, as per The Edge report

KUALA LUMPUR (May 10): The Ministry of Finance (MoF) has confirmed the filing of 22 suits by 1Malaysia Development Bhd (1MDB) and SRC International Sdn Bhd for the recovery of assets with a total in excess of RM96.6 billion (US$23 billion), including RM300 million against various local parties.

In a statement, the ministry said the legal representatives for both entities had on May 7 filed the suits, of which six were filed by 1MDB while 16 were by SRC.

The writs filed by 1MDB are against a total of nine entities — including two foreign financial institutions — and 25 individuals for various wrongdoings including breach of contractual, statutory, common law and fiduciary duties; breach of trust; fraud; conspiracy to defraud; fraudulent misrepresentation; fraudulent breach of duties and trust; fraudulent concealment; fraudulent misappropriation; dishonest assistance in misappropriation of funds; negligence; knowing receipt; and unjust enrichment.

Meanwhile, the writs filed by SRC are against 15 individuals and eight entities for various wrongdoings including abuse of power, breach of fiduciary duties in public office, breach of trust, conspiracy, dishonest assistance, fraudulent breach of duties, knowing receipt, misfeasance and wrongful conversion.

The ministry said 1MDB and SRC contend that these entities and individuals have been unjustly enriched by wrongfully receiving monies from 1MDB or SRC.

"Following significant and successful settlements with Goldman Sachs, AmBank Group and Deloitte PLT, the government’s recovery efforts are now focused on pursuing other wrongdoers who have caused losses to 1MDB and/or SRC during the execution of their duties, as parties directly or indirectly involved in 1MDB and/or SRC’s various operations and transactions. 

“As previously mentioned, the government will not rest until all those involved are made fully accountable for the wrongdoings caused to the country through their involvement in 1MDB and/or SRC," said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Previously, Malaysia received RM10.5 billion (US$2.5 billion) from Goldman Sachs in August 2020 with a further asset recovery guarantee of RM5.88 billion (US$1.4 billion).

The government will soon receive RM2.83 billion from AmBank Group and RM336 million (US$80 million) from Deloitte.

The MoF said all proceeds from the 1MDB asset recovery efforts, including any future settlements, are deposited into the Asset Recovery Trust Account under the custody of the Accountant-General’s Department of Malaysia.

However, it added that these settlements will not affect or compromise Malaysia’s claims against other wrongdoers for the losses caused to 1MDB and SRC and that they will continue to be pursued through both the criminal and civil justice systems.

The ministry thanked the Attorney-General’s Chambers, the Securities Commission Malaysia, Bank Negara Malaysia, the Royal Malaysian Police Force, the National Anti-Financial Crime Centre, the Malaysian Anti-Corruption Commission and the National Centre for Governance, Integrity and Anti-Corruption for their joint effort in bringing these wrongdoers to justice and recovering what rightfully belongs to the Malaysian people.

Earlier today, theedgemarkets.com broke the news that 1MDB had filed several multibillion-ringgit suits, including against foreign banks Deutsche Bank, JP Morgan and Coutts & Co.

It also sued former prime minister Datuk Seri Najib Razak, former Treasury secretary-general Tan Sri Mohd Irwan Serigar, as well as former 1MDB chief executive officers (CEOs) Datuk Shahrol Azral Ibrahim Halmi and Arul Kanda Kandasamy, among others.

Also named in separate suits are fugitive businessman Low Taek Jho (Jho Low), his father Tan Sri Low Hock Peng, sister Low May Lin and accomplice Eric Tan Kim Loong, as well as 1MDB’s then legal firm Wong & Partners and partner Brian Chia Hock Gee.

Najib’s stepson and Hollywood producer Riza Aziz was also named as a defendant in a suit.

Meanwhile, SRC had filed civil suits including against Najib former company directors Shahrol, Datuk Suboh Md Yassin, Datuk Azhar Osman Khairuddin, Tan Sri Ismee Ismail and former managing director Nik Faisal Ariff Kamil.

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