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Former AG keen on out of court settlement with Goldman Sachs

A letter from Thomas (photo) to former PM Mahathir indicated that the former AG was keen for an out of court settlement with Goldman Sachs.,

TheMole
Written by TheMole

KUALA LUMPUR — Aug. 6, 2020: Finance Minister Datuk Seri Tengku Zafrul Aziz has told Parliament that the previous government was keen on an out of court settlement with US investment bank Goldman Sachs on the 1MDB fiasco.

In a letter dated February 11, 2020, former attorney-general Tommy Thomas told then prime minister Tun Dr. Mahathir Mohamad that Goldman Sachs had agreed to increase its offer to US$1.75 billion, including taxes of US$164 million and the return of the fees of US$567 million Goldman Sachs had received.

In the letter Thomas suggested that ways be found to settle the matter out of court.

This is different from Thomas’ statement that the current government should not have agreed to the recent out of court settlement, said Zafrul.

According to Zafrul, records in December last year further showed that the Pakatan government that collapsed last February had suggested to Goldman Sachs a settlement for US$4 billion but this was rejected by the bank that counter offered with US$1.5 billion.

Recently Goldman Sachs reached a US$3.9 billion settlement with Malaysia, which includes a $2.5 billion cash payout and a guarantee to return at least $1.4 billion in assets linked to 1MDB bonds.

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