KUALA LUMPUR – Goldman Sachs has reportedly reached a deal with the US Department of Justice (DoJ) to pay more than US$2 billion (RM8.29 billion) for its role in the 1Malaysia Development Bhd (1MDB) scandal, according to a report in Bloomberg earlier today.
By agreeing to the deal, the New York-based investment bank will avoid a criminal conviction, the report said, quoting sources with knowledge of the negotiations.
Coming just weeks before the US presidential election, the deal would remove a cloud of uncertainty over the bank after years of investigation by the DoJ.
In July, the bank had come to an agreement with Malaysian authorities to pay US$2.5 billion. The government here dropped charges against Goldman Sachs early last month.
In total, the firm may pay about US$5 billion when the deals with Malaysia, DoJ and other parties are tallied together.
The bank has been under investigation for its work in raising for 1MDB US$6.5 billion in 2012 and 2013, much of which was later allegedly diverted by people connected to former prime minister Datuk Seri Najib Razak.
Goldman Sachs has long blamed rogue employees, asserting it had no idea the money it helped raise would be used in unintended ways.
One of the firm’s former partners, Tim Leissner, pleaded guilty in the US to conspiring to launder money and violating foreign bribery laws. Another executive was charged with foreign bribery offences. – The Vibes, October 20, 2020
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