1MALAYSIA Development Bhd (1MDB) and its former unit SRC International Sdn Bhd have filed a combined 22 civil suits against entities (banks and non-bank parties) and individuals to recover assets worth more than RM96.6 bil (US$23 bil), including about RM300 mil against various local parties.
Legal representatives for both entities filed the suits on May 7, according to the Ministry of Finance (MOF).
The writs filed by 1MDB are against 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.
“1MDB and SRC contend that these entities and/or individuals have been unjustly enriched by wrongfully receiving monies from 1MDB or SRC,” the MOF pointed out in a statement.
Commenting on the latest development, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the Government’s recovery efforts are now focused on pursuing other wrongdoers who have caused losses to 1MDB/SRC during the execution of their duties as parties directly or indirectly involved in 1MDB/SRC’s various operations and transactions.
“This follows the significant and successful settlements with Goldman Sachs, AmBank Group and Deloitte PLT,” noted Tengku Zafrul.
“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/SRC.”
Malaysia had earlier received RM10.5 bil (US$2.5 bil) from Goldman Sachs in August 2020 with a further asset recovery guarantee of RM5.88 bil (US$1.4 bil). Soon, the Government will also receive RM2.83 bil from the Ambank Group and RM336 mil (US$80 mil) from Deloitte PLT.
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,” added the MOF. – May 10, 2021
