China News Service, Kuala Lumpur, July 24. The Ministry of Finance of Malaysia announced on the 24th that the US Goldman Sachs Group and the Malaysian government have reached a settlement with the Malaysian government over the issue of bonds by the group for "One Malaysia Development Corporation" (1MDB). protocol. According to this agreement, Goldman Sachs Group will compensate the Malaysian government approximately US$3.9 billion.
According to the statement issued by Malaysian Finance Minister Zafre on the same day, Goldman Sachs’ compensation of US$3.9 billion includes US$2.5 billion in cash and at least US$1.4 billion in assets that it has guaranteed to recover for the Malaysian government. Goldman Sachs will also appoint an expert to assist the Malaysian government in recovering related assets outside Malaysia.
Zarf said that the settlement agreement represents Goldman Sachs's admission of the wrongdoing of its former employees in the 1MDB related incident. He also said that this settlement agreement will not affect Malaysia’s claims against other related parties, and that effective recovery of 1MDB’s assets remains a priority for Malaysia.
Malaysian Prime Minister Muhyiddin then also welcomed the agreement and emphasized that the Malaysian government will continue to pursue 1MDB related assets.
The Malaysian prosecutors' previous investigation determined that Goldman Sachs undertook 3 1MDB bond issuances from 2012 to 2013 and helped 1MDB raise US$6.5 billion, during which US$2.7 billion was embezzled. Goldman Sachs Group also charges a $600 million bond issuance fee much higher than the market level.
At the end of 2018, the Malaysian government charged Goldman Sachs in a money laundering and corruption case involving 1MDB, seeking compensation from Goldman Sachs and demanding the imprisonment of two former employees of Goldman Sachs and two former staff of 1MDB. (Finish)