FINANCE Minister Lim Guan Eng took a swipe at Goldman Sachs CEO David Solomon today, saying an apology over the 1Malaysia Development Bhd (1MDB) debacle was not enough.

Commenting on Solomon’s apology to Malaysians yesterday over the 1MDB issue, Lim said Goldman Sachs must also return US$7.5 billion (RM30.87 billion) to the Malaysian government.

“Apology is not enough. We are seeking the US$7.5 billion,” Lim said.

“Will Goldman Sachs say sorry if we did not change the government on May 9?”

Lim said Najib Razak should stop being in denial about the largest corruption scandal in the country’s history.

“Najib is in a complete state of denial. Goldman Sachs has admitted that they were cheated by their officers and high ranking government officials from Malaysia. There can be only one high ranking government official.

“Malaysians have been cheated and suffered a huge loss in this scandal. Now, will Najib apologise?” Lim added.

Yesterday, in a statement, Solomon apologised over the bank’s role in the 1MDB scandal.

“It’s very clear that the people of Malaysia were defrauded by many individuals, including the highest members of the prior government,” Solomon said at a conference call with analysts after reporting the investment bank’s fourth-quarter earnings yesterday.

Prime Minister Dr Mahathir Mohamad, who is in Dakar, Senegal, also tweeted Solomon’s apology.

In November, Tim Leissner, who once headed Goldman Sachs’ southeast Asian unit, pleaded guilty to violating US anti-bribery and money-laundering laws, and agreed to pay US$43.7 million (RM184 million) in restitution of ill-gotten gains.

Another former Goldman Sachs banker, Roger Ng or Ng Chong Hwa, is in Malaysian detention while the US Department of Justice seeks his extradition.

Solomon apologised for Leissner’s role in the debacle but reiterated that Goldman Sachs had been misled by Leissner and senior officials in the Malaysian government about the role of a key intermediary in the scandal, Low Taek Jho, better known as Jho Low.

“Per Leissner’s role in that fraud, we apologise to the Malaysian people,” AFP reports Soloman as saying.

Goldman has suffered a “reputation dent” tied to the scandal, Solomon acknowledged, but added that the effect on clients had been “de minimus”.

Goldman Sachs reported better-than-expected profits yesterday despite higher legal costs as it works through the 1MDB scandal.

Goldman Sachs arranged three bond sales in 2012 and 2013 to raise US$6.5 billion for 1MDB to acquire assets. For its troubles, it charged 1MDB US$600 million, a fee that dwarfs what banks typically make from such deals.

Lim told the New York Times recently that Goldman Sachs needs to “come to terms”with its role in the multi-billion-dollar 1MDB scandal and not attempt to pin its misdeeds on rogue bankers. – January 18, 2019.