Goldman Sachs Settles With Malaysia, Will Pay $ 3.9 Billion In Sprawling 1MB Bribery Deal


US investment bank Goldman Sachs has reached a US $ 3.9 billion deal with the Malaysian government over the multibillion-dollar 1MDB scandal, the two sides said on Friday.The deal includes a $ 2.5 billion cash payment by Goldman and a guarantee from the bank to return at least $ 1.4 billion in assets linked to 1MDB bonds, the finance ministry said. Malaysia in a statement.

“We are confident that we are getting more money from Goldman Sachs compared to previous attempts, which were well below expectations,” Finance Minister Tengku Zafrul Aziz said in a statement.

“We are also happy to be able to solve this problem outside the justice system, which would have cost a lot of time, money and resources,” he said.

The deal would resolve all outstanding charges and claims against Goldman Sachs, he said.

US and Malaysian authorities claim that around $ 4.5 billion was stolen from 1MDB as part of an elaborate plan that spanned the world and involved former Malaysian Prime Minister Najib Razak and Goldman staff and others.

U.S. prosecutors said the money was used to buy works of art, including paintings by Vincent Van Gogh and Claude Monet, luxury properties in New York and London and to fund the The wolf of Wall Street film.

Malaysian prosecutors filed a complaint in December 2018 against three units of Goldman Sachs for misleading investors over bond sales totaling $ 6.5 billion that the bank helped raise for the sovereign wealth fund, the 1Malaysia Development Berhad.

Former prime minister hears case verdict next week

Goldman Sachs has always denied wrongdoing, saying some members of the former Malaysian government and 1MDB lied to it about how the proceeds from bond sales would be used. Goldman Sachs units had pleaded not guilty to the criminal charges.

Goldman Sachs confirmed the settlement and said it had reached an agreement in principle with Malaysia to resolve all criminal and regulatory proceedings in the country involving the company.

Its shares rose about 0.87% at the start of trading in the market as investors were cautiously optimistic that the bank would resolve some of its links to the scandal.

However, the bank still faces an investigation by the US Department of Justice (DOJ), which is said to look into violations of US law on corrupt practices abroad. The law prohibits paying foreign officials to obtain their assistance in obtaining or maintaining business.

Former Malaysian Prime Minister Najib Razak, left, wearing a beige suit and wearing a face mask, is featured last month during a court appearance in Kuala Lumpur. Najib is set to hear the verdict in one of the trials he faces in the 1MDB scandal next week. (The Associated Press)

A Malaysian court will deliver its verdict on Tuesday in the case against Najib, the first of several corruption trials he will face in connection with the 1MDB scandal.

Najib denied any wrongdoing and pleaded not guilty to all charges against him.

Financier Low Taek Jho, or Jho Low, who was considered essential in promoting the fund and was among the producers of the 2013 film the wolf of Wall Street, remains a fugitive in the affair.


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