‘Full refund’ sought for 1MDB deals
KUALA LUMPUR: Malaysia is stepping up pressure against Goldman Sachs Group Inc as leader-in-waiting Anwar Ibrahim called for “more aggressive” claims against the bank, after the finance minister said the country is seeking a full refund of all the fees it paid for 1MDB deals.
The Southeast Asian nation should also seek compensation from the bank for ruining Malaysia’s image, Mr Anwar said in parliament yesterday. Malaysia has been “cheated” by Goldman, Prime Minister Mahathir Mohamad said in a CNBC interview. Asked whether he would ban the bank from operating in the country, he said, “We are watching”.
Finance Minister Lim Guan Eng said on Monday that he’s banking on the firm’s “indirect” admission of wrongdoing and US law against kleptocracy to help Malaysia recoup fees that include nearly US$600 million that it paid Goldman for three 1MDB bond deals.
Goldman Sachs hasn’t publicly admitted any wrongdoing and has said it’s cooperating with authorities. Its shares plunged 7.5% on Monday in the steepest drop since 2011.
The bank has been under scrutiny for years for its role in raising $6.5 billion for 1MDB and for the fees and commissions it earned from the bonds. 1MDB is at the
centre of a global investigation involving claims of embezzlement and money laundering, which have triggered probes in the US, Singapore, Switzerland and beyond. Goldman has “admitted culpability” after former banker Tim Leissner entered a guilty plea for his role in the scandal, Mr Lim said in an interview on Monday.