Deloitte remits RM336m in 1MDB-related settlement

by ASILA JALIL / pic by TMR FILE

DELOITTE PLT deposited a total of RM336 million into Malaysia’s Assets Recovery Trust Account, the Finance Ministry (MoF) said.

The monies represented the funds seized in matters related to the 1Malaysia Development Bhd (1MDB).

To date, the Trust Account, which is under the custody of the Accountant General’s Department of Malaysia, has received RM16.39 billion of seized and repatriated 1MDB funds.

Any balance in the account will be used to primarily repay and service 1MDB and SRC International Sdn Bhd (SRC) remaining debts.

“This balance excludes the settlement amount of RM2.83 billion that will be received from the Ambank Group soon. Aside from that, negotiations are also currently ongoing with KPMG,” the ministry said in a statement yesterday.

The government has repaid RM12.54 billion of the sovereign fund’s debt and RM3.1 billion of SRC International’s debt, to date.

The MoF stated that the outstanding balance comprising the principal and coupon/profit/interest of bonds, sukuk and term loans currently stands at RM39.66 billion for 1MDB and RM2.57 billion for SRC International.

“The current balance is sufficient to service 1MDB’s debt obligations for 2021 and 2022 only.

“Once all recovered funds in the Trust Account have been utilised, the government will still have to continue bearing the burden of servicing 1MDB’s debt obligations, which were backed by the government’s guarantee and letter of support when these debts were created,” said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The ministry added that the government’s current recovery efforts are focused on parties who have incurred losses to 1MDB and SRC International during the execution of their duties, whether through direct or indirect involvement, as well as those who had wrongfully received SRC International monies disguised as corporate social responsibility activities.

“All those involved will be made fully accountable for the wrongdoings caused to the country through their involvement in 1MDB and/or SRC International,” it added.

Earlier in March, the minister had said Deloitte had agreed to pay RM324 million in a settlement relating to the 1MDB scandal to resolve all claims related to its fiduciary duty on auditing the accounts of 1MDB and SRC International between 2011 and 2014.

On May 12, approximately RM1.9 billion was remitted into Malaysia’s Assets Recovery Trust Account by the US Department of Justice.