by Ganesh Sahathevan
Malaysia's PM and FM Anwar Ibrahim has yet to say anything about the USD 23 Billion 1 MDB litigation against Deutsche Bank AG, JP Morgan and others commenced in 2021. That sum is approximateluy ten times what Anwar wants from Goldman Sachs.
TO BE READ WITH
After successfully recovering in excess of $3 billion, the Malaysian finance ministry is seeking to recover more money stolen from 1MDB. Image by Uwe Aranas/Shutterstock.comJP Morgan and Deutsche Bank are among the targets of 22 civil suits filed by 1Malaysia Development Berhad (1MDB) and SRC International (SRC) to recover billions of dollars allegedly siphoned from 1MDB.
Key facts
- Six of the suits were filed by 1MDB, and the rest by SRC for the return of assets totaling more than $23 billion (RM96.6 billion), the Malaysian finance ministry said in a statement Monday.
- The claims, filed on May 7, also include $73 million (RM 300 million) in claims against various local parties.
- The suit filed by 1MDB is against nine entities, including two foreign financial institutions and 25 individuals, for offenses such as breach of trust, fraud, conspiracy to deceive, breach of duty and trust by fraud, fraudulent misappropriation, negligence, among others.
- The writs filed by SRC are against 15 individuals and eight entities.
- The ministry did not name the foreign financial institutions, but a Bloomberg report identified them as JP Morgan Chase & Co. and Deutsche Bank AG.
- At least two suits were filed in London, while 1MDB separately sued Citigroup’s head of commodities research Ed Morse alleging professional negligence, the report said.
- Billions were allegedly siphoned from 1MDB by people connected to former prime minister Najib Razak, who incidentally has filed an appeal challenging his conviction and prison sentence in connection to the scam.
Key quote
“The government’s efforts are now focused on bringing to justice other offenders who have caused losses to 1MDB and/or the SRC. The government will continue its efforts until all parties involved are fully held accountable for the offenses to the country through their involvement in 1MDB and/or SRC,” Finance Minister Tengku Zafrul Tengku Abdul Aziz said.
Key background
1MDB was established as a government investment company in 2009 under Najib, but instead of attracting foreign investments, the fund accumulated $12 billion in debt. According to US investigators, over $4.5 billion were stolen from 1MDB, an AP report said. The multi-billion-dollar scam had brought down Najib’s government in 2018, and in July last year, he was found guilty of corruption over the scandal. He was sentenced to 12 years in prison in the first trial over the scandal to conclude. Malaysia had previously recovered over $3 billion from firms in connection to the alleged scandal, with Goldman Sachs paying $2.5 billion in August with a further asset return guarantee of $1.4 billion. According to the finance ministry statement, the government will also receive $690 million from Ambank Group and $40 million from Deloitte.
SEE ALSO
https://www.law360.com/articles/1382946/1mdb-sues-deutsche-bank-others-for-23b-over-scandal
Lipman Karas has offices in Adelaide. South Australia, and London.
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