Illegal removals from Marshalls' Trust Fund

7:56 am on 17 October 2017

Officials in the Marshall Islands say about $US1 million was illegally removed from the government's US-based trust fund and only some of it has been recovered.

A series of 12 unauthorised withdrawals during June and July from the fund held at Boston's State Street Bank was followed by the money being paid into accounts at banks in Ireland and Malaysia.

The Marshall Islands Finance Secretary Maybelline Bing said less than a third of money had been recovered from Dublin, with the bulk of the funds in Malaysia still to be returned.

The trust fund, which held $US320 million in April, is being capitalised to provide funding to the Marshall Islands after US grant assistance under the Compact of Free Association expires after fiscal year 2023.