Goldman Sachs settles 1MDB case with Malaysia for $3.9bn
Goldman Sachs has struck a $3.9bn (FJ$ 8.32bn) settlement with Malaysia over losses the south-east Asian country suffered in a corruption scandal when billions of dollars were plundered from 1MDB, its state investment fund.
Under the terms of the agreement, Goldman will make a cash payment of $2.5bn (FJ$5.33bn) to the Malaysian government. The US investment bank has also agreed to guarantee that Malaysia will receive at least $1.4bn (FJ$2.98bn) from the sale of seized assets that were acquired with proceeds misappropriated from 1MDB.
“This settlement represents assets that rightfully belong to the Malaysian people,” said Zafrul Aziz, Malaysia’s finance minister, in a statement.
“We are confident that we are securing more money from Goldman Sachs compared to previous attempts, which were far below expectations.”
The settlement marks the end of a fraught legal battle between Goldman and Malaysia, which has sought to recoup billions of dollars funnelled out of 1MDB to buy luxury property, expensive art and to finance the Oscar-nominated film The Wolf of Wall Street.
The US Department of Justice, which is conducting its own investigation into the scandal, alleges a total of $4.5bn (FJ9.6bn) was misappropriated from the fund.
At the heart of the scandal is Jho Low, a Malaysian financier accused of masterminding a fraud US officials have labelled “kleptocracy at its worst”. Kuala Lumpur has filed criminal charges against Mr Low, who remains at large and denies wrongdoing.
The settlement marks the end of a fraught legal battle between Goldman Sachs and Malaysia, which has sought to recoup billions of dollars funnelled out of 1MDB.