by Theleaders-Online | November 2, 2019 2:45 am
KUALA LUMPUR: Malaysia has rejected an offer from Goldman Sachs of less than US$2 billion (RM8.33 billion) in compensation – over the 1MDB scandal, Prime Minister Tun Dr Mahathir Mohamad told the Financial Times on Friday – compared with its publicly stated demand of US$7.5 billion (RM31.24 billion).
Malaysia has charged Goldman and 17 current and former directors of its units for allegedly misleading investors over bond sales totalling US$6.5 billion (RM27.08 billion) that the U.S. bank helped raise for sovereign wealth fund 1Malaysia Development Bhd (1MDB).
“Goldman Sachs has offered something like less than US$2 billion,” Mahathir told the newspaper. “We are not satisfied with that amount so we are still talking to them? If they respond reasonably we might not insist on getting that $7.5 billion.”
Goldman declined to comment to the FT. The bank did not immediately respond to a Reuters request for comment. Goldman said last month it was in discussions with authorities on the possibility of a resolution of investigations relating to 1MDB.
A spokesman for Mahathir travelling with the leader could not immediately be reached.
US authorities say about US$4.5 billion (RM18.74 billion) was siphoned from 1MDB, founded in 2009 by then-Malaysian Prime Minister Datuk Seri Najib Abdul Razak. The scandal helped Mahathir hand a surprise defeat to Najib in a general election last year.
Mahathir told the FT the Southeast Asian country was not negotiating or in contact with fugitive financier Jho Low, accused of playing a central role in the scam.
Low has consistently denied wrongdoing and says he does not expect a fair trial in Malaysia as long as Mahathir is in power.
The US Justice Department said this week it had struck a deal to recover US$1 billion in funds allegedly looted from 1MDB from Low, in a record haul for a US anti-corruption probe.
The deal does not include an admission of guilt or wrongdoing and is not tied to criminal action against Low.
Mahathir said on Thursday Malaysia would file a claim on Low’s forfeited assets.
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