MINISTRY OF FINANCE MALAYSIA
GOLDMAN SACHS SETTLES WITH GOVERNMENT OF MALAYSIA
The Ministry of Finance, Malaysia wishes to announce that Goldman Sachs has agreed to a total settlement of USD3.9 billion to resolve outstanding charges and claims related to the three bond transactions that the company had structured and arranged for 1MDB. With today's settlement amount and the monies that Malaysia has already received from the U.S. Department of Justice, more than USD4.5 billion will be returned to the people of Malaysia. The Government remains committed to recover other outstanding assets.
The settlement includes a cash payment of USD2.5 billion and a guarantee of a full recovery value of at least USD1.4 billion in assets that are traceable to the diverted proceeds from the three bond transactions. Goldman Sachs, at their cost, will also assist the Government of Malaysia by appointing an asset recovery specialist to recover other related assets currently lying outside Malaysia. This settlement represents a significant increase compared to the previous offer of USD1.75 billion made by Goldman Sachs to the previous administration in 2019.
Tengku Dato’ Sri Zafrul Aziz, the Minister of Finance, said “This settlement represents assets that rightfully belong to the Malaysian people. We are confident that we are securing more money from Goldman Sachs compared to previous attempts, which were far below expectations.”
“We are also glad to be able to resolve this outside the court system, which would have cost a lot of time, money and resources. With this settlement, we will have the return of the monies expedited, and not held up by lengthy and costly court battles and legal process,” added Tengku Zafrul.
This settlement by Goldman Sachs represents its acknowledgment of the misconduct of two of its former employees in the broader 1MDB fraudulent and corruption scheme. This settlement will not affect Malaysia’s claims against Jho Low and others parties related to the 1MDB scandal.
The Ministry of Finance would like to thank the Attorney General’s Chambers, the Securities Commission Malaysia, the National Anti-Financial Crime Centre, the Malaysian Anti-Corruption Commission and members of the negotiating team for their week-long efforts in concluding this settlement.
Ministry of Finance
24 July 2020