Mahathir seeking missing 1MDB funds and transaction fees from Goldman Sachs
Malaysia’s leader said Najib’s government ‘decided that the money was not theirs ... but we know the money is ours’
Malaysia will seek to recoup US$4.5 billion of funds that were potentially lost through 1MDB, as well as fees paid to Goldman Sachs, according to Prime Minister Mahathir Mohamad.
“We have to prove ownership of the money,” Mahathir, 92, said in an interview with Bloomberg Television on Friday. “The previous government, in order to avoid accusation of some wrongdoing, decided that the money was not theirs, so they’re not making any claims. But we know the money is ours. It’s from 1MDB.”
The scandal surrounding the troubled investment company has spawned worldwide investigations, with US officials saying that more than US$4.5 billion flowed from 1MDB through a web of opaque transactions and shell companies. The allegations of corruption helped propel Mahathir’s coalition to a surprise election win in May to oust former prime minister Najib Razak, whose coalition had ruled for about six decades.
Mahathir raised concern over the large commission paid to Goldman Sachs, which made US$593 million for arranging three bond sales for 1MDB. The state fund paid a 10 per cent fee to the bank for its role and accepted a 6 per cent interest rate, he said, adding that the borrowing cost for the government should be closer to 3 per cent.
