Tengku Zafrul: Malaysia still in talks with Goldman Sachs, seeking ‘fair’ settlement over 1MDB
KUALA LUMPUR, July 7 — Putrajaya said today it is still pursuing talks with investment bank Goldman Sachs over a settlement involving the 1Malaysia Development Berhad (1MDB) financial scandal, but would want any payment to Malaysia to be a “fair” amount.
In an interview with Bloomberg, Finance Minister Tengku Datuk Seri Zafrul Aziz confirmed that Malaysia’s efforts to recover funds lost in the 1MDB scandal were still ongoing, but declined to say how much the country was expecting to get back.
“We are still engaging all the relevant stakeholders including Goldman Sachs. The plan is to make sure that Malaysia receives what is due to the country, the Malaysian citizens and the Malaysian government.
“So that is ongoing, I can’t reveal the number but what I can say is that I’m optimistic that recovery will proceed smoothly,” he said in a video clip of his interview on the show “Bloomberg Daybreak: Asia” that was released this morning.
Asked about the status of the Malaysian government’s 1MDB case against Goldman Sachs in local courts, Tengku Zafrul said the case and legal process is still ongoing and that the Malaysian government is leaving it to the courts.
“And at the same time, as you know, we are also engaging Goldman Sachs on any possible settlement, as long as it is a fair number to the Malaysian public, to the Malaysian government,” he repeated.
In June, news agency Reuters reported Tengku Zafrul as saying that the Malaysian government would not be willing to accept compensation even in the range of US$3 billion (RM12.8 billion) from Goldman Sachs to settle the 1MDB case, adding that the government would pursue its court case against Goldman Sachs as long as the amount offered is not acceptable.
Last November, then prime minister Tun Dr Mahathir Mohamad said Malaysia had rejected Goldman Sachs’ offer of less than US$2 billion as settlement, noting that the country was seeking US$7.5 billion but may be willing to accept a lower sum if Goldman Sachs responds in a “reasonable” manner.
The Malaysian government had previously in December 2018 filed charges against Goldman Sachs’ three subsidiaries Goldman Sachs International Ltd, Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore) over alleged involvement in a scheme to defraud the Malaysian government and investors in bond sales worth US$6.5 billion with false and misleading statements given during the fund-raising exercise for 1MDB, with the scheme alleged to have been done in conspiracy with other individuals such as fugitive businessman Low Taek Jho.
The trial involving the Goldman Sachs entities is expected to begin on November 9, with High Court judge Mohamed Zaini Mazlan to hear the case.
Charges were also brought in August 2019 by the Malaysian government against 17 of the current and former directors of the three Goldman Sachs entities.
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