THE remaining debt commitment of 1Malaysia Development Bhd (1MDB) is RM32.08 billion as of June 30, 2022, with an estimated foreign exchange rate of US$1 to RM4.50, Finance Minister Tengku Zafrul Abdul Aziz said.

He said the government had, between April 2017 and May 2022, channelled financial assistance in the form of loans or advances totalling RM10.85 billion via the Finance Ministry (MOF) and Minister of Finance Inc (MOF Inc) to pay off 1MDB’s debt commitments and interest.

“Besides the government’s direct financial assistance, 1MDB’s debt interest is also being financed using 1MDB’s asset recovery funds kept in a trust account under the MOF, known as the Asset Recovery Trust Account,” he said in a written reply to Parliament.

Tengku Zafrul said that as of June 30, 2022, the total 1MDB funds recovered amounts to RM19.28 billion in various foreign currencies, including the United States dollar, Singapore dollar and Australian dollar.

“These funds have been and will be used for the purpose of paying off 1MDB’s debt. As of June 30, 2022, RM10.84 billion has been used to repay 1MDB’s debt.

“This fund still has a balance of RM8.83 billion currently (including hibah, and forex gains or losses),” he said.

He also said the process to recover 1MDB funds is ongoing and that it is a complicated and lengthy process that could take years.

“It not only involves collaboration between several local and foreign agencies, but it also involves both legal and negotiation settlement processes,” he said.

However, the finance minister said that the government remains committed to using legal action or negotiations to continue efforts to recover all monies that were embezzled.

The main goal is to maximise returns to pay off 1MDB’s debt and reduce the government’s financial burden, he noted. – Bernama, July 21, 2022.