Anwar reaffirms efforts to recover 1MDB funds through legal channels, saying pardons will not automatically prevent civil claims or asset forfeiture action.
PETALING JAYA: The government will continue pursuing civil claims and recovering assets linked to 1Malaysia Development Bhd (1MDB), regardless of any pardon granted to individuals convicted over the scandal, said Prime Minister Datuk Seri Anwar Ibrahim.
In a written parliamentary reply, he said civil claims and criminal proceedings operated on different legal bases and standards of proof, while the implications of any sentencing or pardon decision under Article 42 of the Federal Constitution would depend on its scope and the applicable laws.
“The rights of the government and 1MDB to pursue civil claims must be evaluated based on the merits of the claim, evidence, and court orders in those proceedings.
“Similarly, any asset forfeiture action is subject to legal provisions and conditions governing such actions,” he said.
Anwar was responding to Howard Lee (PH-Ipoh Timur), who sought an assurance that developments involving the sentences of convicted individuals would not affect efforts to recover 1MDB funds and assets.
He said the government remained committed to recovering public funds through available legal channels while respecting the jurisdiction of the courts and the constitutional powers relating to pardons.
“The government’s priority is to maximise fund recovery to settle 1MDB obligations, reduce the national financial burden, and protect public interests,” he said.
Anwar said the government had paid RM42.5 billion in debt liabilities and financial commitments linked to 1MDB since it began assuming the obligations in April 2017.
The payments comprised RM27.7 billion in principal and RM14.8 billion in interest and other commitments.
He said the remaining government-guaranteed Islamic Medium Term Note (IMTN) sukuk commitments stood at RM8.9 billion, comprising RM5 billion in principal and RM3.9 billion in interest, with the debt maturing in 2039.
“Taking into account payments made and outstanding commitments, the government’s total financial obligations relating to 1MDB stood at RM51.4 billion.
“After deducting RM31.3 billion in recovered funds and assets, the net financial burden was estimated at RM20.1 billion, assuming no further recoveries,” he said.
In September, former prime minister Datuk Seri Najib Razak received a conditional pardon from His Majesty Sultan Ibrahim, with the remainder of his prison sentence to be served under house arrest until Aug 23, 2028.
Najib was sentenced to 12 years’ imprisonment and fined RM210 million after the Kuala Lumpur High Court found him guilty on July 28, 2020, of seven charges involving RM42 million from SRC International Sdn Bhd.
In February 2024, the Federal Territories Pardons Board halved his prison sentence and reduced the fine to RM50 million.