US Secures Additional $20 Million in Misappropriated 1MDB Funds
Background
1MDB was a sovereign fund set up in 2009 with the help of financier Low Taek Jho, or Jho Low, to promote economic development. It was co-founded by Najib Razak, who was prime minister from 2009 to 2018.
Funds Misappropriation
However, the DoJ discovered that some US$4.5 billion of the funds had been diverted to offshore bank accounts and shell companies, many linked to Low, who was last reported to be hiding in Macau.
Recovery Efforts
In June last year, the DoJ said it had recovered, returned, and assisted in returning to Malaysia approximately US$1.4 billion (RM6.6 billion) which had been misappropriated.
Latest Development
The US justice department (DoJ) said last week it had reached an agreement to recover an additional US$20 million in misappropriated 1MDB funds.
Previous Recovery Efforts
In 2020, the DoJ said it was seeking to recover US$96 million in assets linked to 1MDB.
Overview of 1MDB
1MDB was a sovereign fund set up in 2009 to promote economic development. It went on to raise billions of dollars in bonds for investment projects and joint ventures.
Conclusion
The latest development is a significant step forward in the recovery of misappropriated 1MDB funds, bringing the total amount recovered to approximately US$1.4 billion. This highlights the importance of international cooperation in combating financial corruption and recovering stolen assets.
FAQs
Q: What is 1MDB?
A: 1MDB is a sovereign fund set up in 2009 to promote economic development.
Q: Who co-founded 1MDB?
A: 1MDB was co-founded by Najib Razak, who was prime minister from 2009 to 2018, and financier Low Taek Jho, or Jho Low.
Q: How much of the funds were misappropriated?
A: The DoJ discovered that some US$4.5 billion of the funds were diverted to offshore bank accounts and shell companies.
Q: How much has been recovered so far?
A: The DoJ has recovered, returned, and assisted in returning to Malaysia approximately US$1.4 billion (RM6.6 billion) which had been misappropriated.