MOF: Goldman Sachs agrees to US$3.9b settlement
• UPDATED 7.25PM | Added remarks by Prime Minister Muhyiddin Yassin.
The banking firm Goldman Sachs has agreed to a US$3.9 billion (RM16.63 billion) settlement with the Malaysian government, said the Finance Ministry.
This will involve US$2.5 billion (RM10.66 billion) in cash and a promise to eventually handover US$1.4 billion (RM5.97 billion) in assets.
The Finance Ministry said that the sum was...
• UPDATED 7.25PM | Added remarks by Prime Minister Muhyiddin Yassin.
The banking firm Goldman Sachs has agreed to a US$3.9 billion (RM16.63 billion) settlement with the Malaysian government, said the Finance Ministry.
This will involve US$2.5 billion (RM10.66 billion) in cash and a promise to eventually handover US$1.4 billion (RM5.97 billion) in assets.
The Finance Ministry said that the sum was related to the "misappropriation" of funds involving three bond transactions handled by the bank.
The assets, however, will need to be recovered from abroad in which Goldman Sachs has pledged to finance the recovery process, said the Finance Ministry.
"The quantum of this settlement is a large increase from the US$1.75 billion (RM7.46 billion) offer made by Goldman Sachs to the government in 2019," said the ministry.
The ministry said the settlement was an admission of guilt by Goldman Sachs on the wrongdoings of two of its former staff in a scheme to defraud 1MDB.
"This settlement will not jeopardise Malaysia's claims against Jho Low and other individuals in the 1MDB scandal," said the ministry.
Meanwhile, Prime Minister Muhyiddin Yassin lauded the settlement as a success in reinstating the rights and property of the Malaysian people.
He said the settlement would bring the total funds recovered from the alleged misappropriation from 1MDB to US$4.5 billion (RM19 billion). The figure includes money repatriated by the US Department of Justice.
“The government is committed to continuing efforts to recover other 1MDB-related assets and continue to pursue claims against individuals and other parties linked to the 1MDB scandal,” he said in a separate statement.
Goldman Sachs was engaged by 1MDB to raise US$6.5 billion (RM27.72 billion) between 2009 and 2014.
In August last year, Malaysian prosecutors filed 17 criminal charges against Goldman Sachs.
Following this, the bank offered to settle.
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