MALAYSIAN negotiators are considering to settle 1MDB-related cases against US investment bank Goldman Sachs for less than half of the US$7.5 billion (RM31.5 billion) in fines and costs demanded by the government, Bloomberg reported.

The finance publication, citing unnamed sources, said Malaysian representatives have discussed figures between US$2 billion and US$3 billion, though the final number may be different.

Bloomberg also reported that former Council of Eminent Persons chairman Daim Zainuddin has been roped in for the talks, while prosecutors continue to pursue criminal charges in Malaysian courts.

Attorney-General Tommy Thomas, who is leading the Malaysian side in settlement talks with the bank, had said the government has a strong case against Goldman Sachs and it will continue to be pursued while negotiations are going on.

The Bloomberg report said it is still unclear whether all 17 charges against Goldman Sachs, its subsidiaries and both former and current employees will be dropped should a settlement be reached.

Representatives from the Attorney-General’s Chambers, the US Department of Justice, Goldman Sachs and Daim have declined to comment on the matter, the publication reported.

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

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.

The money demanded from the bank includes the US$600 million in proceeds that it gained from facilitating 1MDB-related deals.

Low, a wanted man in Malaysia, Singapore and the US, is the alleged mastermind of the 1MDB scandal and was said to have siphoned 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 23, 2019.