US criticised for handing 1MDB cash to 'unelected' Malaysian government

Malaysian anti-corruption campaigners expressed concern Wednesday that the United States had returned $300 million in funds stolen from the scandal-hit 1MDB state fund to an "unelected" government.

Billions of dollars were plundered from the sovereign wealth fund and spent on everything from a luxury yacht to artwork in a fraud allegedly involving Malaysian ex-leader Najib Razak and his inner circle.

Najib was ejected in 2018 elections largely due to public anger over the scandal, and a new reformist government then began the process of recovering money stolen from the investment vehicle.

On Tuesday the US Justice Department announced it had sent $300 million stolen from the fund to Malaysia - and that it had now returned or helped the Southeast Asian nation recover more than $1 billion in funds and assets lost in the fraud.