Malaysia not talking to Goldman Sachs over 1MDB funds
Finance minister says legal process will continue in bid to recover state funds lost via the US bank’s former client 1Malaysia Development Berhad
04 October 2019 - 10:02
byJoseph Sipalan
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Kuala Lumpur — Malaysia’s finance minister on Friday said there are no talks with Goldman Sachs Group on the recovery of billions of dollars of state funds lost via the US bank’s former client 1Malaysia Development Berhad (1MDB), local media reported.
Malaysia filed criminal charges in 2018 against Goldman Sachs over its role as underwriter and arranger of three bond sales that raised $6.5bn for the now-defunct state investment fund.
The US department of justice is investigating the bank for its role in the sales, which involved fees higher than market rates. It also estimated $4.5bn was misappropriated from 1MDB by fund officials and associates from 2009 through 2014.
“There are no discussions with Goldman Sachs but we will continue with the legal process conducted by the attorney-general,” Malaysian minister of finance Lim Guan Eng was quoted as saying by news portal Malaysiakini.
A ministry official confirmed the comment to Reuters.
In January, Lim said the government would be ready to drop criminal charges against Goldman Sachs if the bank paid $7.5bn in reparations.
Malaysian prosecutors then filed criminal charges in August against 17 current and former directors at Goldman Sachs subsidiaries.
Goldman Sachs has denied wrongdoing, saying individuals at 1MDB and in Malaysia’s former government lied to the bank, outside counsel and others about the use of the bond sale proceeds.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Malaysia not talking to Goldman Sachs over 1MDB funds
Finance minister says legal process will continue in bid to recover state funds lost via the US bank’s former client 1Malaysia Development Berhad
Kuala Lumpur — Malaysia’s finance minister on Friday said there are no talks with Goldman Sachs Group on the recovery of billions of dollars of state funds lost via the US bank’s former client 1Malaysia Development Berhad (1MDB), local media reported.
Malaysia filed criminal charges in 2018 against Goldman Sachs over its role as underwriter and arranger of three bond sales that raised $6.5bn for the now-defunct state investment fund.
The US department of justice is investigating the bank for its role in the sales, which involved fees higher than market rates. It also estimated $4.5bn was misappropriated from 1MDB by fund officials and associates from 2009 through 2014.
“There are no discussions with Goldman Sachs but we will continue with the legal process conducted by the attorney-general,” Malaysian minister of finance Lim Guan Eng was quoted as saying by news portal Malaysiakini.
A ministry official confirmed the comment to Reuters.
In January, Lim said the government would be ready to drop criminal charges against Goldman Sachs if the bank paid $7.5bn in reparations.
Malaysian prosecutors then filed criminal charges in August against 17 current and former directors at Goldman Sachs subsidiaries.
Goldman Sachs has denied wrongdoing, saying individuals at 1MDB and in Malaysia’s former government lied to the bank, outside counsel and others about the use of the bond sale proceeds.
Reuters
Malaysia files criminal charges against 17 Goldman Sachs executives
Malaysia charges Brit with money laundering for his role in 1MDB scandal
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
How Malaysia approached China with a plan to bail out 1MDB
US charges financier and former Goldman bankers for 1MDB looting
Former Malaysian PM Najib faces more corruption charges
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.