Source: Goldman made first payment from US$2.5b cash settlement to escape 1MDB charges in Malaysia

KUALA LUMPUR : Malaysia has received part of the US$2.5 billion that US investment bank Goldman Sachs agreed to pay for the withdrawal of criminal charges here against it over the 1Malaysia Development Berhad scandal (1MDB) scandal, according to an unnamed source.

The Edge Markets reported the person — described as a source with knowledge of the agreement — as confirming the tranche payment but not the sum transferred.

In July, the federal government reached a settlement with Goldman to drop criminal charges against the US investment bank over bond issuances on behalf of 1MDB in 2012 and 2013. — Reuters pic
In July, the federal government reached a settlement with Goldman to drop criminal charges against the US investment bank over bond issuances on behalf of 1MDB in 2012 and 2013. — Reuters pic

The funds were said to be in escrow pending the finalisation of the transaction between the government and Goldman.

“Now we have to work with Goldman Sachs to track other assets and wrongdoers. Their resources will be useful to us,” said the source.

In July, the federal government reached a settlement with Goldman to drop criminal charges against the US investment bank over bond issuances on behalf of 1MDB in 2012 and 2013.

The settlement included the US$2.5 billion cash payment and Goldman’s undertaking to ensure Malaysia received at least US$1.4 billion in assets linked to 1MDB.

However, former government officials including the previous attorney general, Tan Sri Tommy Thomas, have pointed out that these assets were those already seized by other governments across the world and included some that have already been returned to Malaysia.

Goldman conceded as much in a note to its investors in which it said it expected no further exposure from the settlement.

BY : DANIAL DZULKIFLY – MALAY MAIL

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