1MDB, SRC file suits against local, international parties to recover RM97b

MoF says legal representatives of both entities had filed 22 suits last Friday, 6 writs initiated by 1MDB and 16 from SRC

by RAHIMI YUNUS / pic by TMR FILE

1MALAYSIA Development Bhd (1MDB) and SRC International Sdn Bhd have filed civil suits to recover assets worth over RM96.6 billion (US$23 billion) combined, including RM300 million against local parties.

The Ministry of Finance (MoF) said legal representatives of both entities had filed the suits last Friday — six writs initiated by 1MDB and 16 from SRC — making it 22 civil cases.

“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,” MoF said in a statement yesterday.

The ministry said SRC filed writs 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.

MoF added that 1MDB and SRC contend that these entities and/or individuals have been unjustly enriched by wrongfully receiving monies from the two companies.

“Following significant and successful settlements with Goldman Sachs Group Inc, 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,” Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said in the statement.

It was reported that 1MDB has named Deutsche Bank (M) Ltd, JP Morgan (Switzerland) Ltd and Coutts & Co Ltd in its six separate civil suits.

The troubled sovereign strategic development company also named former Prime Minister Datuk Seri Mohd Najib Razak (picture; left), former Treasury secretary general Tan Sri Dr Mohd Irwan Serigar Abdullah (right) and former 1MDB CEOs Datuk Shahrol Azral Ibrahim Halmi and Arul Kanda Kandasamy as defendants, among others.

Separately, fugitive businessman Low Taek Jho, also known as Jho Low, and few other people in his circle were also on the defendant list.

Meanwhile, SRC has filed suits against Najib, its former director Datuk Suboh Md Yassin and former CEO Nik Faisal Ariff Kamil, among others, according to media reports.

Malaysia had earlier 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 MoF said the government would soon receive RM2.83 billion from AmBank and RM336 million (US$80 million) from Deloitte.

It 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.

“These settlements will not affect or compromise Malaysia’s claims against other wrongdoers for the losses caused to 1MDB and SRC, and they will continue to be pursued through both the criminal and civil justice systems,” MoF said.

In March, MoF set up a special task force to recover the debt incurred by 1MDB. The company’s board of directors said in a statement that 1MDB still has RM32.3 billion of outstanding debt.