Malaysia to continue pursuing legal action against Goldman Sachs over 1MDB: Finance minister

Malaysia to continue pursuing legal action against Goldman Sachs over 1MDB: Finance minister

Goldman's role in the scandal is under scrutiny as the Wall Street bank
Goldman's role in the scandal is under scrutiny as the Wall Street bank helped arrange US$6.5 billion in bonds for 1MDB, and Malaysian authorities say huge sums were stolen in the process. (Photo: AFP/Manan Vatsyayana)

PUTRAJAYA: Malaysia will continue pursuing legal action against Goldman Sachs over the 1Malaysia Development Bhd (1MDB) case although the company will reportedly pay the United States Department of Justice to settle the case.

Malaysian Finance Minister Lim Guan Eng said on Thursday (Dec 12) he had contacted the Attorney-General’s Chambers and was informed that the case is expected to be heard in the middle of next year.

“So the case is still ongoing and the Malaysian government is seeking up to US$7.5 billion in reparations from Goldman Sachs for the losses we suffered following the 1MDB scandal," Mr Lim told a press conference in Putrajaya.

“This is what we are seeking and we will proceed with court action."

READ: Malaysia's PM Mahathir hopeful of 1MDB settlement with Goldman Sachs soon

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According to media reports, Goldman Sachs is set to pay between US$1.5 billion and US$2 billion to the US Department of Justice to settle the case.

Goldman Sachs is facing criminal charges over the issuance of US$6.5 billion worth of bonds related to 1MDB. 

On Dec 19 last year, the prosecution filed four charges against Goldman Sachs for allegedly leaving out material facts on the sales of bonds between a subsidiary of 1MDB and Aabar Investments PJS.

The offences were said to have been committed at 1MDB, Level 8 Tower IMC, No 8, Sultan Ismail Road in Kuala Lumpur, between March 19, 2012 and Nov 11, 2013.

READ: Former Malaysia PM Najib takes stand in 1MDB scandal-linked trial

The company was charged under the Capital Markets and Services Act, which provides for a maximum jail term of not more than 10 years and a fine of not less than RM1 million, upon conviction.

On Dec 19 last year, former Goldman Sachs banking expert Roger Ng Chong Hwa, 46, pleaded not guilty in the Kuala Lumpur Sessions Court to playing a role in the 1MDB-related bond issuance.

The US Department of Justice estimates US$4.5 billion was misappropriated from 1MDB between 2009 and 2014, including some funds that Goldman Sachs helped raise.

Source: Bernama/hs

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