MALAYSIA was ready to reach a settlement with New York-based Goldman Sachs Group regarding its claim over money plundered from 1Malaysia Development Bhd (1MDB), said Prime Minister Anwar Ibrahim.

But Anwar warned the international bank must not take Malaysia for granted, and shoulder consider its own reputation.

“A settlement is possible because we are not unreasonable… I even refused to state a quantum because … we should allow for some flexibility to discuss,” Anwar was quoted as telling Bloomberg News during his visit to New York for the United Nations General Assembly.

“I don’t think it’s fair to suggest the entire deal has to be relooked, but there are specific areas where there are flaws. Maybe we just focus on that,” he said.

Anwar’s government had earlier taken a hard stand against Goldman Sachs, stating it was unhappy with the settlement quantum agreed by the bank with the previous Malaysian administration.

After months of talk, Bloomberg News reported the bank and Malaysia were taking a fresh stab at resolving the matter.

The report said that behind the scenes, Goldman Sachs executives have made fresh overtures while Anwar had struck a more conciliatory tone.

Anwar said he might reconsider taking Goldman Sachs to court over disagreements tied to the deal sealed by the previous government.

“They (Goldman Sachs) are taking us for granted. They think we’ll not proceed with a lawsuit,” Anwar said.

“There is nothing for us to lose except the legal fees, which a government can manage. But it’s also the integrity of Goldman Sachs that’s in question.”

As part of a US$3.9 billion (RM16.6 billion then) settlement in 2020, Goldman Sachs made an initial US$2.5 billion payment 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.

Goldman Sachs was also required to make an interim payment of US$250 million if Malaysia did not receive at least US$500 million in assets and proceeds by August last year.

Anwar said his government was unhappy about two key aspects – the settlement quantum and interpretation of some clauses – of the existing deal and how Goldman Sachs has approached it.

Anwar said he could get personally involved if needed, but did not think it was necessary just yet.

“We have a competent team to look at it, but if needed, I can meet them for just a casual tea or cheesecake,” he said. – September 25, 2023.