GOLDMAN Sachs will hand over a cash payment of US$2.5 billion (RM10.6 billion) to Putrajaya, under a settlement the two sides reached yesterday, in the next two months.

Finance Minister Tengku Zafrul Tengku Abdul Aziz said the payment is part of the settlement sum of US$3.9 billion to resolve outstanding charges and claims related to three bond transactions that the US investment bank arranged for 1Malaysia Development Bhd.

The balance of US$1.4 billion will be paid after assets bought using misappropriated funds are returned to Malaysia.

“We previously received US$620 million from the US Justice Department. The US$2.5 billion will be handed over within two months, and the balance will be paid once we have recovered several assets,” Tengku Zafrul told reporters in Shah Alam today.

The settlement brings to US$4.5 billion the total amount to be returned to the government.

Tengku Zafrul said the monies will be channelled directly into a trust fund set up specifically to clear 1MDB’s debts.

He said the fund will be useful especially in settling payments for 1MDB bonds that will mature in 2022 and 2023.

The settlement was reached between Putrajaya and Goldman Sachs, he stressed, and not with former bank employees Tim Leissner and Roger Ng, who are caught in the 1MDB scandal.

“It will not influence the government’s efforts to recover 1MDB assets and funds from other individuals or companies.” – Bernama, July 25, 2020.