NEW YORK – Global financial giant Goldman Sachs will pay about US$2.9 billion (RM12 billion) total to settle the massive 1MDB corruption scandal involving its Malaysian subsidiary, government officials said Thursday (US time).
Goldman pled not guilty and agreed to a deferred prosecution with the US Department of Justice (DOJ), which said the company will owe US$2.3 billion in penalties plus US$606 million forfeiture of gains.
Excluding payments made to authorities in Britain, Singapore and Hong Kong as well as the US Federal Reserve and SEC, Goldman will pay US$1.26 billion to US Treasury, the official said in a New York federal court.
The plea in federal court for violations of US bribery law comes as part of a deal to end the criminal probe into the corruption case involving the controversial investment fund.
The move could curtail activities of Goldman Sachs Malaysia but allows the parent company to avoid admitting wrongdoing – which would have damaged its ability to do business.
Goldman Sachs helped raise US$6.5 billion (RM26.9 billion) for the sovereign wealth fund, and the DOJ has said more than US$4.5 billion was stolen from 1MDB by high-level officials at the fund and their associates between 2009 and 2015.
The Malaysian government dropped the charges against Goldman in July after reaching a US$3.9 billion settlement with the financial giant.
The firm, which posted profits of US$3.5 billion in the latest quarter, had set aside more than US$3.1 billion as of September 30 "for litigation and regulatory proceedings." – AFP, October 22, 2020
.jpeg)
