Malaysia will forget all about the Goldman Sachs 1MDB scandal for the low low price of $7.5 billion

21-Jan-2019 Intellasia | This is Insider | 6:00 AM Print This Post

Malaysia’s finance minister has hinted that the country’s government may consider dropping charges against Goldman Sachs over its alleged role in the 1MDB scandal. For a price.

Lim Guan Eng told reporters on Friday that Malaysia would consider a settlement with the bank to the tune of $7.5 billion.

“An apology is just not sufficient. Not enough,” Lim said on Friday, speaking from Malaysia’s administrative capital Putrajaya. “There must be the necessary reparations and compensations.”

Lim earlier this week launched a stinging attack on Goldman, which acted as an adviser and fundraiser for the 1MDB fund.

“Goldman Sachs should understand the agony and the trauma suffered by the Malaysian people as a result of the 1MDB scandal.”

The 1Malaysia Development Berhad fund, or 1MDB, is at the centre of one of the biggest financial scandals in history, as it is the subject of corruption and money-laundering investigations in at least six countries.

Goldman earned roughly $600 million in fees for raising $6.5 billion for the fund.

In December, Malaysia filed criminal charges against Goldman Sachs, saying that $2.7 billion of the proceeds of three 1MDB bonds was misappropriated and that it was seeking “well in excess” of that amount in fines.

Malaysia also filed charges against two former Goldman partners for their role in the scandal.

Lim’s words come just two days after Goldman’s CEO David Solomon apologised publicly to the people of Malaysia for the role that Timothy Leissner, one of the two ex-partners facing criminal charges, played in the scandal.

On the bank’s earnings call Wednesday, Solomon said Malaysia had been “defrauded by many individuals” including Leissner.

“At least he accepted that they have to bear and shoulder some responsibility,” Lim said in response to Solomon’s apology.

“That apology of course goes some way toward that, but that is insufficient.”

Goldman Sachs declined to comment further on Friday, but in a statement earlier this week, the bank maintained that it will “vigorously defend” itself against any charges, and accused former government officials of lying to the bank.


Category: Malaysia

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