Govt to review US$3.9 billion settlement deal with Goldman Sachs

The government is re-evaluating a US$3.9 billion (RM17.25 billion) settlement deal reached between the previous administration and US investment bank Goldman Sachs over the 1MDB financial scandal, Bernama reported on Monday.

Prime Minister Anwar Ibrahim said a government task force looking into 1MDB issues was scrutinising the 2020 deal with Goldman, adding that it was a matter of recovering public funds, Bernama reported.

"I agree (with a review) because from the start, I felt the settlement agreement was done hastily which led to many questions being raised," Anwar was quoted as saying by Bernama.

Goldman Sachs agreed in 2020 to pay US$2.5 billion in cash and guarantee the return of US$1.4 billion in assets to Malaysia to settle a criminal probe into the bank's alleged involvement in the multi-billion-dollar scandal, in a deal reached during the administration of Muhyiddin Yassin.

Goldman did not immediately respond to a request for comment.

Malaysian and US authorities estimate some US$4.5 billion were stolen from 1MDB between 2009 and 2014, in a globe-spanning scheme that implicated high-level government and banking officials in Malaysia and elsewhere.

Goldman had helped 1MDB raise US$6.5 billion in two bond offerings, earning itself US$600 million in fees, according to the US Justice Department.

Since taking office last November, Anwar has sought to review previous governments' decisions on 1MDB in a bid to recoup money embezzled from the fund.

In February, Abu Dhabi's International Petroleum Investment Co and its unit Aabar Investments PJS agreed to pay Malaysia US$1.8 billion to settle a separate legal dispute over 1MDB.

1MDB is the subject of corruption and money-laundering investigations in at least six countries.

Last month, former Goldman banker Roger Ng was sentenced by a US court to 10 years in prison, after being convicted of helping to loot billions of dollars from 1MDB.