GOLDMAN Sachs must make a US$2.5 billion (RM10.45 billion) cash payment to Malaysia within the next 10 days, following official affirmation of a settlement with Putrajaya over the 1Malaysia Development Bhd scandal, Bloomberg reported today.

The two parties signed an agreement today following the bank’s announcement of a US$3.9 billion settlement with the Malaysian government on July 24.

The US investment bank confirmed the formal accord in a regulatory filing late yesterday in New York.

Quoting sources with knowledge of the matter who asked for anonymity, the report said the bank must now pay Malaysia US$2.5 billion cash within 10 days. 

The Perikatan Nasional government last month accepted Goldman Sachs’ offer of US$2.5 billion to settle claims over the investment bank’s role in the 1MDB financial scandal. The sum is one-third of the US$7.5 billion sought by the previous Pakatan Harapan administration.

Under the deal, Goldman Sachs will pay US$2.5 billion cash while guaranteeing the return of US$1.4 billion of 1MDB assets seized by authorities around the world, in exchange for Malaysia dropping charges against the bank.

Opposition leaders and former attorney-general Tommy Thomas were among many who had questioned the deal.

Thomas said the deal was rushed and premature, resulting in the government giving up its greater bargaining power.

He said the PH government had rejected the deal as the amount offered was too low.

Former finance minister Lim Guan Eng said Goldman Sachs was benefiting from paying Malaysia less than what the PH government had demanded.

Lim said Prime Minister Muhyiddin Yassin must explain why Malaysia allowed the bank to benefit. – August 19, 2020.