Goldman Sachs Group is struggling to distance itself from its involvement in the 1MDB investment fund scandal, despite agreeing to a more than US$5 billion settlement three years ago.
Now, the Wall Street giant and Malaysia are attempting to address this enduring embarrassment.
Behind the scenes, Goldman Sachs executives have initiated fresh negotiations, reportedly disclosed by Malaysian Prime Minister Anwar Ibrahim during his visit to New York for the United Nations General Assembly.
This follows Anwar’s earlier mention of considering legal action against Goldman Sachs due to disagreements stemming from the previous settlement.
Anwar expressed openness to a potential settlement, emphasising reasonableness and flexibility in discussions. While he does not advocate a complete reevaluation of the deal, he highlights specific areas of concern that may warrant attention. Goldman Sachs declined to comment on the matter.
The 1MDB investment fund scandal, involving billions of dollars, triggered investigations worldwide.
In 2020, after reaching the initial agreement and an unusual celebratory photo-op, Goldman Sachs admitted to its role in the largest foreign bribery case in US enforcement history. This admission led to multiple international settlements exceeding US$5 billion.
Malaysia is actively pursuing the return of former Goldman banker Roger Ng, sentenced in the US to ten years in prison for his involvement in the scandal. Anwar believes Ng’s knowledge could significantly aid ongoing investigations.
The 2020 settlement obligated Goldman Sachs to pay US$2.5 billion and ensure the return of US$1.4 billion in seized 1MDB assets, with interim payments of US$250 million if certain conditions were not met. Disagreements over these terms have persisted.
While both parties aim for an amicable resolution, Anwar cautions Goldman Sachs against underestimating the threat of legal action. He emphasises the importance of upholding Goldman Sachs’ integrity.
The Malaysian government’s dissatisfaction centres on two key issues: the settlement’s quantum and interpretation of specific clauses, according to Anwar.
Anwar suggests his personal involvement, if necessary, but does not see the need for it.
“We have a competent team to look at it” but if needed, I can “meet them for just a casual tea or cheesecake.”
South Korean trainee doctors resign in protest against med-school quota increase policy
OCBC allocates one-off payment to junior employees to cope with rising cost of living
US couple’s decision to skip showers in Malaysia over discoloured water criticised
Good Samaritan earns praise for assisting lost girl in Geylang
Bishan HDB maisonette sets record with S$1.48M sale
STB grants support for Taylor Swift concerts, foresees economic boost for Singapore
NUS holds 19th, NTU climbs to 32nd in Times World University Rankings 2024
Leaks and condensation issues persist for some Tengah residents using CCS
NParks investigates alleged wild chicken capture in Pasir Ris Park
Netizens amused by ‘washrooms basic cleaning’ course on SkillsFuture
Road fatalities in Singapore surpass pre-pandemic levels in 2023
Bayer cuts dividends to legal minimum to tackle debt burden
Singapore1 week ago
PM Lee encourages more births in the year of the dragon amid declining fertility rates
Singapore1 week ago
Singapore surpasses nursing recruitment target in 2023 amidst high attrition rates
Featured5 days ago
PA surveys community & govt confidence amid pending general election
Comments6 days ago
PAP Marcus Loh accuses WP’s MP of alleged dishonesty on debate about reserves
Parliament2 weeks ago
SG Parliament rejects PSP’s motion calling for changes in reserves policies
Civil Society6 days ago
Singaporeans stand firm in support for Palestine amidst police scrutiny
Civil Society4 days ago
At least 9 individuals summoned by police over Palestine solidarity activities on 2 Feb
Community1 week ago
Connectivity struggles in Tengah town prompt online user discussion