HomeNEWSMOF: Ambank to pay RM2.83b to Malaysia as 1MDB settlement, will save...

MOF: Ambank to pay RM2.83b to Malaysia as 1MDB settlement, will save time instead of going to court; won’t affect claims against Jho Low

A man walks past a 1 Malaysia Development Berhad (1MDB) billboard in Kuala Lumpur, March 30, 2015. — Picture by Yusof Mat Isa
A man walks past a 1 Malaysia Development Berhad (1MDB) billboard in Kuala Lumpur, March 30, 2015. — Picture by Yusof Mat Isa

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KUALA LUMPUR, Feb 26 — AMMB Holdings Berhad has agreed to pay RM2.83 billion to the Malaysian government as global settlement on all outstanding claims and actions over AmBank Group’s involvement in the 1Malaysia Development Berhad (1MDB) matter, the Finance Ministry announced today.

The ministry said that this settlement is part of the Malaysian government’s continuing efforts against all parties directly or indirectly involved in 1MDB and 1MDB-linked entities to recover funds.

Finance Minister Datuk Seri Tengku Zafrul Aziz said the settlement agreed with AMMB Holdings would enable a faster recovery of funds to be used for 1MBD’s financial obligations, as compared to going through long court processes.

“This latest settlement is beneficial for the Malaysian people. Resolving this through the court system would have cost a lot of time, money and resources.

“With this settlement, the payment of the monies will be expedited, instead of being held up by lengthy court battles, and can be utilised to fulfil 1MDB’s outstanding obligations,” he said in the statement.

This global settlement is on top of a RM53.7 million penalty that Bank Negara Malaysia had previously imposed and which had been paid by the AmBank Group, the ministry said.

“This global settlement will not affect or compromise Malaysia’s claims against individuals like Jho Low, Jasmine Loo and other parties related thereto and who are still being pursued in relation to the 1MDB scandal,” the ministry added.

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