International Asia Goldman pays Malaysia $2.5 bn as part of 1MDB deal

Goldman pays Malaysia $2.5 bn as part of 1MDB deal




- Advertisement -

Goldman Sachs has paid Malaysia $2.5 billion as part of a settlement over the US investment bank’s role in the multi-billion-dollar 1MDB scandal, officials said Friday.

The agreement, which has a total value of $3.9 billion, was announced last month after lengthy negotiations.

Billions of dollars were looted from sovereign wealth fund 1Malaysia Development Berhad in a fraud that involved former prime minister Najib Razak and his cronies.

The cash plundered from state coffers bankrolled a global spending spree, and was used to buy everything from artwork, to real estate and a superyacht.

- Advertisement -

Goldman’s role came under scrutiny over bond issues totalling $6.5 billion it helped arrange for the investment vehicle, with Malaysia claiming large amounts were misappropriated during the process.

The settlement comprises a payment of $2.5 billion to Malaysia and a guarantee that at least $1.4 billion in assets acquired with misappropriated funds would be recovered.

A spokesman for Malaysia’s finance ministry confirmed the cash part of the settlement “has been paid by Goldman Sachs and received via an escrow account” on Thursday.

Bloomberg News reported the funds will be used to repay outstanding debts of 1MDB, citing a person familiar with the matter.

- Advertisement -

Najib was voted out of office in 2018 in large part due to public anger over the scandal.

The government that took over charged Goldman and a string of former and current employees over the fraud, as well as demanding hefty compensation.

Under the agreement, Malaysia will end all criminal proceedings against the bank.

Prime Minister Muhyiddin Yassin said last month that, combined with 1MDB-linked funds already returned to Malaysia by the United States, the country will receive a total of $4.5 billion.

- Advertisement -

Najib was last month handed a 12-year jail term after being convicted on all seven charges in the first of several trials related to 1MDB. He remains free on bail while he appeals.


© 1994-2020 Agence France-Presse
/AFPFollow us on Social Media

Send in your scoops to 

No tags for this post.
- Advertisement -

Suspected Ang Mo Kio cat-slasher arrested

Singapore – A 37-year-old man has been arrested for his suspected involvement in a series of cat-slashing incidents in Ang Mo Kio. The Animal & Veterinary Service (AVS), an entity under the National Parks Board (NParks), conducted an operation on Tuesday (June...

Circles.Life telco comes under fire for ad that implies hierarchy between Chinese, Malays and Filipinos; company does not apologise

Update In an update, Circles.Life Singapore issued an apology on their Instagram page on Thursday (Jun 10).   View this post on Instagram   A post shared by Circles.Life (@circleslifesg) Delbert Stanley Ty, Head of Marketing also added: “We messed up. We’re sorry. Our posts were tone...

‘Badge Lady’ asks that charges against her be dropped, claims there were ‘errors’ in the investigation

Singapore — Phoon Chiu Yoke, or "Badge Lady" as she is called by netizens, has been released on S$8,000 bail after she was remanded at the Institute of Mental Health (IMH) for two weeks. The 53-year-old was infamously caught on camera refusing...
Follow us on Social Media

Send in your scoops to 

No tags for this post.