He said between April 2017 and May 2022, the government had channelled financial assistance in the form of loans or advances totalling RM10.85 billion via the finance ministry (MoF) and Minister of Finance Inc (MoF Inc) to pay off 1MDB’s debt commitments and interest.

“Besides the government’s direct financial assistance, 1MDB’s debt interest is also being financed using 1MDB’s asset recovery funds kept in a trust account under the MoF, known as the Asset Recovery Trust Account,” he said in a written reply in Parliament.

Tengku Zafrul said that as of June 30, 1MDB’s total funds recovered amounted to RM19.28 billion in various foreign currencies, including the US, Singapore and Australian dollars.

“These funds have been and will be used to pay off 1MDB’s debt. As of June 30, 2022, RM10.84 billion had been used to pay 1MDB’s debt.

“The funds still have a balance of RM8.83 billion (including hibah, and forex gains or losses),” he said.

He also said the process to recover 1MDB funds was ongoing and that it was a complicated and lengthy process that could take years.

“It not only involves collaboration between local and foreign agencies, but also legal and settlement processes,” he said.

However, the finance minister said the government remained committed to using legal action or negotiations to continue efforts to recover all embezzled funds.

The main goal was to maximise returns to pay off 1MDB’s debt and reduce the government’s financial burden, he said.