Business World

Goldman Sachs & Malaysia agree on RM16.5 billion settlement

TheMole
Written by TheMole

KUALA LUMPUR — July 24, 2020: Goldman Sachs has reached a US$3.9 billion (about RM16.5 billion) settlement with Malaysia over the multi-billion dollar 1MDB scandal.

The settlement that was confirmed by Finance Minister Tengku Datuk Seri Zafrul Aziz today includes a $2.5bn cash payout by Goldman and a guarantee to return at least $1.4bn in assets that are traceable to the diverted proceeds from the three bond transactions linked to 1MDB.

US officials have so far helped Malaysia recover more than $1bn in assets.

Goldman Sachs, at its cost, would also assist the government by appointing an asset recovery specialist to recover other related assets currently lying outside Malaysia.

The deal resolves all outstanding charges in Malaysia against the bank.

Malaysian prosecutors filed charges in December 2018 against three Goldman Sachs units for allegedly misleading investors over bond sales totalling $6.5bn that the bank helped raise for 1MDB.

Goldman Sachs described the settlement as an important step towards putting the 1MDB matter behind it and will help enable the Malaysian government to move forward with additional recovery efforts and to execute on its economic priorities.

Comments

comments

About the author

TheMole

TheMole