PUTRAJAYA will proceed with legal action against Goldman Sachs despite a report that the investment bank wants to settle its case with the US Department of Justice, said Lim Guan Eng.

The finance minister said the government remains in the dark about the settlement report, as it doesn’t have any information on the matter. 

“For the government, we will still pursue with criminal charges against Goldman Sachs.

“I was informed by the attorney-general that this case will commence in the middle of next year,” he said at the ministry in Putrajaya today. 

Bloomberg reported that Goldman Sachs, the bank at the heart of the 1Malaysia Development Bhd scandal, could end up paying less than US$2 billion (RM8.4 billion) as part of its settlement with the Department of Justice. 

Yesterday, Prime Minister Dr Mahathir Mohamad remains hopeful of reaching an out-of-court settlement with Goldman Sachs over its involvement in the 1MDB scandal, according a Reuters report.

“We would like to avoid having to go to the courts, but if they come up with a reasonable sum I think we will agree,” Dr Mahathir told the agency.

Dr Mahathir previously rejected a compensation offer for what he said was in excess of US$1 billion as too low, given that Putrajaya is demanding US$7.5 billion from the bank.

Lim said the case will proceed as the government still wants to claim payment of the US%$7.5 billion. 

“This is for the loss caused by Goldman Sachs alone in the 1MDB scandal.

“As for the others like Jho Low (Low Taek Jho), there is more.”

The American bank helped the state investor raise US$6.5 billion between 2012 and 2013.

It pocketed a US$600 million fee from the deal brokered by what Goldman Sachs termed “rogue employees”, including its former Southeast Asia head Tim Leissner and Roger Ng.

Meanwhile, Dr Mahathir confirmed there would be no bargaining with fugitive financier Low, better, who is still on the run.

“We think he is very guilty. We have proof of that,” Dr Mahathir said. – December 12, 2019.