THE government estimates a net financial burden of RM20.1 billion from 1Malaysia Development Bhd (1MDB), despite recovering RM31.3 billion in funds and assets, highlighting the scale of liabilities still associated with the scandal.
The Ministry of Finance (MOF) said total government financial obligations linked to 1MDB amounted to RM51.4 billion, including payments already made and commitments yet to be settled.
In a written parliamentary reply published on Parliament's website yesterday, the ministry said the government had paid RM42.5 billion since it began assuming responsibility for 1MDB's debts and financial commitments in April 2017.
Of that amount, RM27.7 billion went towards principal repayments, while RM14.8 billion covered interest and other commitments.
The estimated RM20.1 billion net burden assumes no additional funds or assets will be recovered in the future.
The ministry was responding to Lee Chuan How (PH-Ipoh Timor), who sought clarification on measures to prevent similar cases from transferring financial liabilities to taxpayers and whether developments in criminal sentencing could affect ongoing recovery claims.
It said the outstanding commitment for government-guaranteed Islamic Medium-Term Notes (IMTN) stood at RM8.9 billion, comprising RM5 billion in principal and RM3.9 billion in interest up to maturity in 2039.
On asset recovery, the ministry stressed that criminal sentencing or a pardon would not automatically end civil claims to recover misappropriated funds.
“Civil claims have different causes of action and evidential requirements from criminal proceedings,” it said.
Any implications arising from sentencing or a pardon under Article 42 of the Federal Constitution must be assessed according to the scope of the decision and applicable laws, it added.
The ministry said the government's and 1MDB's rights to pursue civil claims would depend on the grounds of each claim, the evidence and relevant court orders. Asset forfeiture proceedings would remain subject to the applicable legal provisions and conditions.
“The government's position is firm: efforts to recover public funds will continue through available legal channels, while respecting the jurisdiction of the courts and the powers of pardon provided for under the Federal Constitution,” it said.
The ministry said maximising asset recovery remained a priority to meet 1MDB's obligations, reduce the country's financial burden and protect the public interest. - October 23, 2026