Malaysia receives $156 million in 1MDB-linked assets from US

US ambassador states returned assets are to be used for original purpose of improving lives of everyday Malaysians

KUALA LAMPUR:

Malaysia has recovered $156 million in assets connected to the 1MDB scandal, following an investigation by the United States, according to the US embassy in Kuala Lumpur.

US Ambassador to Malaysia Edgard D Kagan announced that this latest tranche of funds is the fourth to be returned to Malaysia by the US Department of Justice.

"This extraordinary sum of money is going back to the people of Malaysia where it belongs and where it can finally be used for its original intended purpose – to better the lives of everyday Malaysians," Kagan said in a statement.

The announcement came after Kagan met with Malaysian Prime Minister Anwar Ibrahim on Tuesday to confirm the return of the funds. This latest recovery brings the total amount of returned assets to $1.4 billion.

US officials have estimated that over $4.5 billion was misappropriated from Malaysia’s state fund 1MDB by high-level officials and their associates. The scandal led to significant political upheaval in Malaysia, causing the first change in government in six decades.

It also sparked investigations in six countries and resulted in the convictions of former Malaysian Prime Minister Najib Razak and former Goldman Sachs banker Roger Ng.

Earlier this year, Malaysia announced it had recovered property and other assets worth 23.9 million ringgit ($5 million) from 1MDB. The fund was initially established by Najib to spur economic development.