Goldman Sachs agrees to pay Malaysia US$3.9bn settlement over 1MDB

Last updated on May 18th, 2021 at 06:06 am

PETALING JAYA – US investment bank Goldman Sachs and Malaysia has agreed for a US$3.9 billion settlement over the multibillion-dollar 1MDB corruption scheme.

According to Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Azi, the group also agreed for the cash payment in order to resolve outstanding charges and claims related to the three bond transactions that Wall Street bank arranged for 1MDB. The remaining US$1.4 billion will be paid once the assests related from the transaction have been returned back to Malaysian government.

Tengku Zafrul Aziz said the he is glad that both sides were able to settle and resolve the problem outside of court which has saved them money, resources and time.

Malaysia has filed charges against three Goldman Sachs units in 2018 for alleged misleading of investors over a $6.5 billion total bond sales that the bank helped raised for 1MDB.

Goldman Sachs said that the settlements resolves outstanding charges and claims against them and today’s settlement is a vital step towards putting the scandal behind the company.

US and Malaysian authorities estimated that almost $4.5 billion was stolen from 1MDB that implicated former Malaysian Prime Minister Najib Razak and Goldman Sachs. The Malaysian court will deliver Najib’s verdict on Tuesday.