Anwar: 1MDB recovery efforts to continue despite pardons

KUALA LUMPUR: The government remains committed to pursuing civil claims and asset recovery efforts related to 1Malaysia Development Bhd (1MDB) despite any pardon granted to individuals convicted over the scandal.

Prime Minister Datuk Seri Anwar Ibrahim said civil claims have a different basis of action and burden of proof from criminal proceedings.

He said the effect of any decision regarding sentencing or pardons under Article 42 of the Federal Constitution must be examined based on the scope of the decision and 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 in a written parliamentary reply today.

Anwar was replying to Howard Lee (PH-Ipoh Timur), who asked for an assurance that recovery efforts would not be affected by developments regarding any convict's sentence.

Last September, former prime minister Datuk Seri Najib Razak received a conditional pardon from His Majesty Sultan Ibrahim, King of Malaysia, with the remainder of his prison sentence to be served under house arrest until Aug 23, 2028.

Najib, 73, was sentenced to 12 years' jail 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.

However, the Federal Territories Pardons Board halved his original 12-year sentence in February 2024 and reduced the RM210 million fine to RM50 million.

Anwar said the government's stance remains firm in pursuing the recovery of national funds through available legal channels while respecting the jurisdiction of the courts and constitutional pardon powers.

"The government's priority is to maximise fund recovery to settle 1MDB obligations, reduce the national financial burden, and protect public interests.

"Since the government began assuming debt liabilities and financial commitments linked to 1MDB in April 2017, it has paid RM42.5 billion, comprising RM27.7 billion in principal payments and RM14.8 billion in interest and other commitments," he said.

He added that the remaining balance of government-guaranteed Islamic Medium Term Note sukuk commitments stands at RM8.9 billion, comprising RM5 billion in principal and RM3.9 billion in interest, maturing in 2039.

Taking into account payments made and remaining commitments, he said the total financial obligation borne by the government regarding 1MDB stands at RM51.4 billion.

"After deducting RM31.3 billion in recovered funds and assets, the net financial burden borne by the government is estimated at RM20.1 billion, assuming no additional fund or asset recoveries in the future," he said.