GOLDMAN Sachs would like to settle criminal charges related to the 1Malaysia Development Bhd (1MDB) scandal brought against it by the Malaysian government but as it stands now, the case is still headed to court.

Attorney-General Tommy Thomas told The Malaysian Insight that the government has a strong case against the US investment bank and its directors and is looking forward to have its day in court.

“As in many litigation cases, representations have been made to settle the matter outside of court, but any settlement has to meet the benchmark which we consider satisfactory. 

“As it stands now, the case is still headed to court,” said Thomas.

It was reported that the bank and the government had met twice to discuss settlement, with the attorney-general representing the Malaysian side.

In August, Putrajaya filed criminal charges against 17 current and former directors Goldman Sachs’ subsidiaries over the 1MDB scandal.

In a statement, the attorney-general said the charges were brought under the Malaysian Capital Markets and Services Act, which holds certain senior executives responsible for any offences that may have been committed by their companies.

“Custodial sentences and criminal fines will be sought against the accused… given the severity of the scheme to defraud and fraudulent misappropriation of billions in bond proceeds,” he had said.

Thomas said the individuals who have been charged include Goldman Sachs International chief executive officer Richard Gnodde, Goldman Sachs Group Inc’s vice-chairman Michael Sherwood, and Goldman Sachs International’s co-chief executive officer.

Last year, Malaysia filed criminal charges against Goldman Sachs and two of the US bank’s former employees in connection with 1MDB.

The Malaysian government has accused the investment 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.