MoF: Goldman Sachs reps in Malaysia to discuss 1MDB settlement deal

KUALA LUMPUR (July 20): Senior representatives of Goldman Sachs Group Inc have flown into Malaysia this week to continue its discussions with the Malaysian government on the repatriation of 1Malaysia Development Bhd (1MDB) funds and assets into the country, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz. 

In a statement today, he said the effective recovery of 1MDB assets remains a key priority for the Malaysian government. 

“As part of these efforts, the government has proactively taken action across multiple countries and organisations. 

“In addition, led by Malaysia’s Attorney General’s Chamber, the government has also been conducting ongoing discussions and negotiations with multiple international organisations including Goldman Sachs Group Inc,” said Tengku Zafrul.

“This week, senior representatives from Goldman Sachs Group Inc have flown into Malaysia to continue discussions and negotiations with the government. 

“We hope these discussions will prove to be fruitful and will enable us to move closer towards achieving the desired results on the recovery of 1MDB assets,” he added. 

Tengku Zafrul pointed out that the government is “fully committed” to ensure the recovery of 1MDB assets. 

“We are taking every action and step to ensure a recovery value that is fair and just for the Malaysian people,” he added. 

On Saturday, Singapore’s Strait Times reported that a six-member team of executives and legal counsel from Goldman Sachs entered Malaysia last Saturday to sort out the final stages of a settlement deal with Malaysian authorities over the bank’s role in the 1MDB fund embezzlement scandal.

According to the report, the team will meet Attorney-General Tan Sri Idrus Harun, who heads the recovery team with the assistance of Solicitor General II Datuk Siti Zainab Omar. 

It was also reported that a US-based financial executive assisting the Malaysian government said the Goldman Sachs team would not come to Malaysia if a deal was not achievable.

Goldman Sachs was the investment bank which received a hefty fee of US$600 million from 1MDB for helping the latter arrange three bonds in 2012 and 2013 amounting to US$6.5 billion. 

Of the funds raised, it was alleged that then-Goldman Sachs Asia partner Tim Leissner alongside others misappropriated US$2.7 billion as bribes and kickbacks to government officials including then-prime minister Datuk Seri Najib Razak, who allegedly received US$681 million into his personal bank account.

On July 9, Tengku Zafrul reportedly said Malaysia is still pursuing compensation from Goldman Sachs in the range of US$2 billion to US$7.5 billion. 

Last November, then-prime minister Tun Dr Mahathir Mohamad said Malaysia was against the settlement offer of US$2 billion from Goldman Sachs, and the nation wants to settle for US$7.5 billion although it is still negotiable. 

Malaysia, through efforts by a special task force, has recovered RM1.4 billion of 1MDB funds abroad with another RM6.9 billion to be identified, according to a statement by the Prime Minister’s Office in March. 

Stay safe. Keep updated on the latest news at www.EdgeProp.my
Click here for more property stories