US government returns US$156 million worth of 1MDB funds to Malaysia
This takes the total returned so far to US$1.4 billion, says US Department of Justice
THE US Department of Justice (DOJ) said that it has returned an additional US$156 million in misappropriated 1MDB funds to Malaysia, a month after the South-east Asian nation sought extra compensation from US authorities.
That brings the total amount the DOJ has repatriated to Malaysia to about US$1.4 billion, according to a statement on the department’s website late on Thursday (Jun 13).
Malaysia in May said that it was entitled to additional funds from US authorities after the latter formally ended their criminal case with Goldman Sachs for its role in the scandal-hit state fund 1Malaysia Development Berhad (1MDB).
The looting of 1MDB by officials in Malaysia after Goldman Sachs helped it raise money spawned a multibillion-dollar scandal and probes across various continents.
Funds that 1MDB held, as well as proceeds of bonds issued for and on behalf of it, were spent on a variety of extravagant items including luxury homes, a superyacht, and fine art by Monet and Van Gogh, according to the DOJ.
The DOJ has seized US$1.7 billion in stolen assets linked to 1MDB since 2016, and continues to litigate actions against additional assets allegedly linked to the scheme, it said in its statement.
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Malaysia had previously criticised the US efforts, saying the amount recovered and repatriated was far less than the total of US$4.5 billion that was misappropriated.
1MDB has initiated lawsuits against multiple parties in recent months to claw back lost funds, including against the wife of jailed former prime minister Najib Razak.
Malaysia is also seeking additional payments from Goldman Sachs, which reached a deal with the country that eases the bank’s financial burden if the missing funds are recouped. BLOOMBERG
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