1MDB scandal: US recovers another US$49 million siphoned from Malaysian fund

The US has now recovered nearly US$1.1 billion in 1MDB assets, after forfeiture cases involving former Abu Dhabi IPIC boss Khadem al-Qubaisi

The trial of former Malaysian prime minister Najib Razak will resume next week after being halted in March because of Covid-19 concerns

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The US says it has recovered or assisted in the recovery of over US$1.1 billion in assets siphoned from Malaysia’s 1MDB fund. Photo: AFP

Published: 1:30pm, 7 May 2020Updated: 10:45pm, 7 May 2020

The United States has reached a settlement to recover more than US$49 million involving Malaysian sovereign wealth fund 1MDB, the US Department of Justice said.

The government of former Malaysian prime minister Najib Razak set up the 1MDB fund in 2009 to promote economic development.

The US justice department has estimated more than US$4.5 billion was siphoned out of Malaysia by high-level fund officials and their associates between 2009 and 2014 in a scandal that has also embroiled Goldman Sachs.

Malaysia's former prime minister Najib Razak arrives for his trial in Kuala Lumpur. Photo: AFP

The DOJ said in a statement dated May 6 that it has settled its civil forfeiture cases against assets acquired by the former managing director of Abu Dhabi’s International Petroleum Investment Company (IPIC), Khadem al-Qubaisi, using funds allegedly misappropriated from 1MDB and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.

IPIC had guaranteed bonds for 1MDB in 2012, arranged by Goldman.