KUALA LUMPUR • Malaysia has rejected an offer from Goldman Sachs of less than US$2 billion (S$2.7 billion) in compensation over the 1MDB scandal, Prime Minister Mahathir Mohamad told the Financial Times (FT) last Friday. This compares with its publicly stated demand of US$7.5 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 that the US bank helped raise for sovereign wealth fund 1Malaysia Development Berhad (1MDB).
"Goldman Sachs has offered something like less than US$2 billion," Tun Dr 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 US$7.5 billion."
Goldman declined to comment to FT. The United States bank also did not immediately respond to a Reuters request for comment.
It said last month that it was in discussions with the authorities on the possibility of a resolution of investigations relating to 1MDB.
The US authorities said about US$4.5 billion was siphoned from 1MDB, founded in 2009 by then Malaysian Prime Minister Najib Razak.
The scandal helped Dr Mahathir hand a surprise defeat to Najib in a general election in May last year.
Dr Mahathir told FT that Malaysia was not negotiating or in contact with fugitive financier Low Taek Jho, who is 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 Dr Mahathir is in power.
The US Department of Justice (DOJ) said last week that it had struck a deal to recover from Low US$1 billion in funds allegedly looted from 1MDB, in a record haul for a US anti-corruption probe.
This followed the previous seizure of assets that were allegedly bought by Low and his family, including luxury homes in Beverly Hills, New York and London, a luxury boutique hotel in Beverly Hills, expensive paintings, a private jet grounded in Singapore and other investments.
The deal does not include an admission of guilt or wrongdoing and is not tied to criminal action against Low, 38, who still faces criminal charges in the US. His whereabouts are unknown.
"This agreement does not release any entity or individual from filed or potential criminal charges," the DOJ said last week.
Dr Mahathir said last Thursday that Malaysia would file a claim on Low's forfeited assets.
REUTERS
