Malaysia rejects 3-billion-USD settlement from Goldman Sachs

Headquarters of Goldman Sachs in New York, the US(Photo: AFP/VNA)

Kuala Lumpur (VNA) – Malaysia would reject a settlement offer of 3 billion USD from Goldman Sachs related to the 1Malaysia Development Bhd (1MDB) financial scandal, said Finance Minister Zafrul Aziz.

The Malaysian government has filed criminal charges against Goldman Sachs in Malaysia and 17 incumbent and former directors at three of its subsidiaries.

Malaysia accused Goldman Sachs of misleading investors in arranging 6.5 billion USD in bond sales for 1MDB, while allegedly knowing the money would be misappropriated.

Aziz said he had held a conversation with Goldman Sachs Group Inc representatives last month, adding that the country will continue its pursuit in the case.

Malaysia will not accept if the settlement stands at 2 or 3 billion USD. The government will continue with the legal case as long as it does not accept the amount.

According to the US Department of Justice, Goldman Sachs earned 600 million USD in fees for its work with 1MDB.

The 1MDB was set up by then Malaysian Prime Minister Najib Razak in 2009 to boost the country’s socio-economic development. Najib is now facing dozens of charges for corruption, misappropriation of funds and abuse of power linked to the fund./.