Malaysia brings home high-value art, including a Picasso, seized in 1MDB probe

KUALA LUMPUR, April 14 (Reuters) – Malaysia’s anti-graft agency said on Tuesday it had successfully repatriated four high-value pieces of artwork, including a 1961 Pablo Picasso print, recovered in connection with a multibillion-dollar scandal at state fund 1MDB. 

Over the past decade, Malaysia has sought to recover more than $4.5 billion siphoned from 1Malaysia Development Berhad between 2009 and 2014 in a complex, globe-spanning scheme.

U.S. investigators have said the funds – allegedly misappropriated by high-level officials of 1MDB and their associates – were used to buy everything from luxury hotels to jewelry and artwork. 

The Malaysian Anti-Corruption Commission said in a statement the recovered artworks were valued at around $198,000 and include Picasso’s “L’Ecuyère et les clowns” (1961), Joan Miró’s “Composition” (1953), Maurice Utrillo’s “Maison de Rendez-vous de chasse de Henri IV, Rue St. Vincent, Montmartre” (1934) and Balthus’ “Étude pour femme couchée” (1948).

“All artworks have been placed in a specially designated location under strict security control and are currently undergoing an environmental stabilisation process to ensure optimal preservation prior to uncrating, authentication, and valuation by the National Visual Arts Development Board,” the agency said. 

The MACC said in December it would repatriate a dozen pieces of art held in the United States, following discussions with officials from the Federal Bureau of Investigation and U.S. Justice Department. 

The Picasso and Miró pieces were among the 12 artworks that were recovered from a former 1MDB lawyer and then stored at the Christie’s and Sotheby’s auction houses, the MACC said.

Authorities have said the artwork may be publicly displayed at Malaysia’s national art gallery before potentially being auctioned for sale. 

“Each recovered asset, including these artworks, demonstrates that there is no safe haven for illicit proceeds to be concealed, even when involving complex cross-border financial networks,” the MACC said on Tuesday. 

To date, Malaysia has recovered about 31.2 billion ringgit ($7.90 billion) in assets, representing nearly 70% of all identified properties linked to 1MDB, it said.  

1MDB, co-founded by former prime minister Najib Razak, has been the subject of corruption and money laundering investigations in at least six countries. Najib, who has consistently denied wrongdoing, was jailed in 2022 after being convicted of graft linked to the scandal.  

($1 = 3.9490 ringgit)

(Reporting by Rozanna Latiff; Editing by Sharon Singleton)