THE US Department of Justice has returned millions of dollars to Malaysia recovered from the seizure of assets reportedly purchased using money from now-defunct state development fund 1Malaysia Development Berhad (1MDB).

According to a statement released on Tuesday by Malaysia’s Attorney-General Tommy Thomas, the transfer, totalling 57 million dollars, represents the first installment of funds back to Malaysia from seized assets after official investigations were opened by the Malaysian government in 2018.

1MDB is the subject of an international probe spanning multiple countries, including the U.S., Singapore and Switzerland.

The probe was over suspicions that 4.5 billion dollars were siphoned from the fund by high-ranking officials, including former Prime Minister Najib Razak and some of his closest family and aides.

“The money was recovered from the forfeiture of U.S.-based film production company Red Granite pictures, which had been linked to Najib and his stepson, Riza Aziz,’’ the statement said.

The Department of Justice is expected to remit a further 139 million dollars from the sale of a stake in Park Lane Hotel in Manhattan belonging to fugitive Malaysian financier Low Taek Jho.

Low, whose whereabouts remain unknown, has emerged as one of the central figures in the scandal.

Widespread public anger about the perceived misappropriation of funds, fuelled by persistent allegations that public money was used to splurge on private jets, luxury yachts, prime real estate around the world, and even the financing of a Hollywood movie.

The public anger led to the ousting of Najib and his party from government in 2018.

Najib is currently on trial on 42 counts of criminal charges for his alleged involvement in the scandal. (dpa/NAN)

– May 7, 2019 @ 10:55 GMT |