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Why is Malaysia’s 1MDB scandal still casting a long shadow over its economy?
About 70 per cent of the US$10 billion funds pilfered from the sovereign wealth fund have been recovered, Malaysia’s MACC says
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Seventy per cent of the US$10 billion stolen from Malaysia in the 1MDB corruption scandal has been recovered by Malaysia, the country’s anti-corruption agency announced on Monday, following the return of US$3.2 million in assets from associates of Jho Low, the scheme’s larger-than-life alleged mastermind.
Nearly seven years after the scandal unravelled with Low’s co-conspirator and former Prime Minister Najib Razak losing in the 2018 election, Malaysia is still seeking to recover its stolen assets linked to the sovereign wealth fund.
Authorities say the nation faces formidable legal and financial hurdles as it hunts down the balance of pilfered funds to settle 1MDB-linked repayments, which the country is burdened with until 2039.
Background
What began as a government initiative to drive economic development through global partnerships became one of the largest financial frauds in history. Instead of boosting investment in Malaysia, 1MDB turned into a conduit for massive corruption and money laundering, with over 42 billion ringgit (US$9.45 billion) siphoned off.
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