Don’t just apologise, pay Malaysia US$7.5 billion, finance minister tells Goldman Sachs
- Lim Guan Eng says his country is seeking billions in reparations from Goldman over its 1MDB deals
Malaysia’s finance minister said on Friday the government would be ready to discuss dropping criminal charges against Goldman Sachs linked to the 1MDB scandal if the bank pays US$7.5 billion in reparations.
Goldman Sachs is being investigated by Malaysian authorities and the United States’ Department of Justice for its role as underwriter and arranger of three bond sales that raised US$6.5 billion for 1Malaysia Development Berhad. The bank has denied wrongdoing.
US prosecutors last year charged two former Goldman bankers with the theft of billions of dollars from 1MDB.
Finance Minister Lim Guan Eng said Malaysia was seeking US$7.5 billion in reparations from Goldman Sachs over its 1MDB deals, which included fees paid to the bank and bond coupons that were “higher than the market rate”.
Asked by a reporter on Friday if Malaysia would drop the charges against the bank if it paid the reparations, Lim said: “Pay the $7.5 billion, then we can discuss.”
Malaysia reopened domestic investigations into 1MDB last year, after a historic election that saw the country’s first change of government in more than 60 years.