KUALA LUMPUR (Oct 14): Malaysia has recovered about RM20.73 billion so far through settlements with several financial institutions involved in the multibillion-dollar 1Malaysia Development Bhd (1MDB) scandal.

This is made up of US$3.9 billion (approximately RM16.5 billion) that Goldman Sachs Group Inc agreed to pay, comprising US$2.5 billion in cash and an asset recovery guarantee valued at US$1.4 billion, RM2.83 billion from AmBank Group, and US$330 million (RM1.4 billion) from JPMorgan (Switzerland) Ltd.

The settlement with JP Morgan was announced on Aug 22. Before that, on Aug 13, the Ministry of Finance announced that a total of RM29.7 billion linked to 1MDB and its subsidiary SRC International Sdn Bhd had been recovered since the establishment of the Asset Recovery Trust Account in 2018. 

"All proceeds from these settlements have been fully received and deposited into the Asset Recovery Trust Account managed by the MOF,” the ministry stated in its written reply to Yeo Bee Yin (PH-Puchong) on Tuesday.

Yeo had asked for an update on the status of 1MDB's asset recovery efforts, including which banks had been sued or settled with, and the latest status of the dispute with Goldman Sachs.

In its reply, the MOF also clarified that the Malaysian government itself has not sued any bank over 1MDB-related transactions, but that 1MDB has filed suits against several financial institutions.

Apart from the three banks that have reached settlements, other institutions sued include Deutsche Bank (Malaysia) Bhd, BSI Bank Singapore, Amicorp Group, Standard Chartered Bank Singapore and RBS Coutts.

Regarding the ongoing dispute with Goldman Sachs, the MOF said the government’s legal team — comprising representatives from the Attorney General’s Chambers and King’s Counsel from UK — is handling the arbitration proceedings.

However, due to the confidentiality terms of the arbitration process, "no further details can be disclosed at this stage", the ministry said.

Goldman Sachs initiated the arbitration claim against the Malaysian government on Oct 11, 2023, at the London Court of International Arbitration (LCIA). The case stems from a disagreement over obligations outlined in the settlement agreement signed on Aug 18, 2020, between the Malaysian government, 1MDB and Goldman Sachs.

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