Goldman Sacs returns US$3.9 bil in 1MDB settlement to Malaysia

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Goldman Sacs returns US$3.9 bil in 1MDB settlement to Malaysia
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Sources say the settlement talks concluded on Friday but Goldman Sachs declined to comment. FMTNews GoldmanSachs 1MDB

KUALA LUMPUR: Goldman Sachs has agreed to a total settlement of US$3.9 billion to resolve outstanding charges and claims related to the three bond transactions that the company had structured and arranged for 1MDB, Finance Minister Tengku Zafrul Aziz said.

He said with today’s settlement amount and the monies that Malaysia had already received from the US Department of Justice, more than US$4.5 billion would be returned to the people of Malaysia. “The government remains committed to recover other outstanding assets. The settlement includes a cash payment of US$2.5 billion and a guarantee of a full recovery value of at least US$1.4 billion in assets that are traceable to the diverted proceeds from the three bond transactions,” he said in a statement.

Goldman Sachs, at its cost, would also assist the government by appointing an asset recovery specialist to recover other related assets currently lying outside Malaysia. This settlement represents a significant increase compared to the earlier offer of US$1.75 billion made by Goldman Sachs to the previous administration in 2019.

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