Malaysia expects to write off up to 70% of 1MDB losses

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Malaysia’s finance minister Lim Guan Eng said that authorities have reason to believe that up to 70 per cent of the misappropriated money from state investment fund 1Malaysia Development Berhad of around $4.5 billion are irretrievable.

The government could realistically get back 30 per cent or, “if very lucky,” possibly 50 per cent.

He said that asset recovery in the multi-billion fraud investigation was going “much slower than expected” and that a full recovery was out of reach.  

“We want to get as much as we can but the reality is you can’t get the actual amount,” Lim said to reporters at an investment conference Hong Kong on September 13, according to Bloomberg News.

Investigators in at least ten countries are trying to map the numerous complex transactions spanning the globe that Swiss Attorney-General Michael Lauber called a “Ponzi scheme.” That underscores the difficulty in crossing national borders to locate and claim assets funneled from 1MDB.

Malaysia is seeking to expedite the sale of a $250 million yacht seized as part of a US Justice Department probe into 1MDB, while looking to bring back a $35 million jet parked in Singapore, where authorities additionally have seized $175 million from bank accounts and properties linked to the Malaysian fund.

The burden of shouldering the 1MDB debt has inflated the government’s debt and liabilities to exceed one trillion ringgit ($241 billion), Lim said. He has had to reduce spending including by canceling multibillion-dollar transportation projects and delaying election pledges until after Malaysia has reined in its debt in what Lim called is a “mammoth task.”

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Reading Time: 1 minute

Malaysia’s finance minister Lim Guan Eng said that authorities have reason to believe that up to 70 per cent of the misappropriated money from state investment fund 1Malaysia Development Berhad of around $4.5 billion are irretrievable.

Reading Time: 1 minute

Malaysia’s finance minister Lim Guan Eng said that authorities have reason to believe that up to 70 per cent of the misappropriated money from state investment fund 1Malaysia Development Berhad of around $4.5 billion are irretrievable.

The government could realistically get back 30 per cent or, “if very lucky,” possibly 50 per cent.

He said that asset recovery in the multi-billion fraud investigation was going “much slower than expected” and that a full recovery was out of reach.  

“We want to get as much as we can but the reality is you can’t get the actual amount,” Lim said to reporters at an investment conference Hong Kong on September 13, according to Bloomberg News.

Investigators in at least ten countries are trying to map the numerous complex transactions spanning the globe that Swiss Attorney-General Michael Lauber called a “Ponzi scheme.” That underscores the difficulty in crossing national borders to locate and claim assets funneled from 1MDB.

Malaysia is seeking to expedite the sale of a $250 million yacht seized as part of a US Justice Department probe into 1MDB, while looking to bring back a $35 million jet parked in Singapore, where authorities additionally have seized $175 million from bank accounts and properties linked to the Malaysian fund.

The burden of shouldering the 1MDB debt has inflated the government’s debt and liabilities to exceed one trillion ringgit ($241 billion), Lim said. He has had to reduce spending including by canceling multibillion-dollar transportation projects and delaying election pledges until after Malaysia has reined in its debt in what Lim called is a “mammoth task.”

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