GOLDMAN Sachs has begun negotiations to settle criminal charges against three of its subsidiaries brought by Malaysian authorities over the 1Malaysia Development Bhd (1MDB) scandal.

The Nikkei Asian Review quoted Attorney-General Tommy Thomas as saying that two rounds of talks have taken place so far, with himself leading the Malaysian side, but they are still far from an agreement.

Thomas said the charges will continue to be pursued in the meantime.

“We have had some preliminary meetings, but the gulf is still very wide.

“Both the criminal charges and settlement negotiations are happening in parallel. They are not mutually exclusive,” he was quoted as saying.

Thomas added that Malaysia has a strong case against the bank, but negotiations can continue until even when the trial is in progress.

Charges against 17 other current and former Goldman Sachs executives have also been announced by the Malaysian government.

The government has accused the bank of helping fugitive businessman Low Taek Jho, commonly known as Jho Low, to defraud 1MDB by misleading investors via false statements and the omission of key facts on the fund and its transactions.

Malaysia, the first country to prosecute Goldman Sachs as a company, is seeking US$3.3 billion (RM13.8 billion) in compensation.

The funds comprise of US$2.7 billion in fines against Goldman Sachs (Asia) LLC, Goldman Sachs International (UK) and Goldman Sachs (Singapore), and US$600 million that the bank made from 1MDB related transactions.

Low, a wanted man in Malaysia, Singapore and the US, is the alleged mastermind of the 1MDB scandal and was said to have pilfered up to US$10 billion from the sovereign wealth fund.

Former prime minister Najib Razak is also facing 87 charges of alleged corruption and abuse of power over the 1MDB scandal in court. – October 17, 2019.