KUALA LUMPUR – Goldman Sachs Group Inc has been given 10 days to settle its remaining US$1.26 billion (RM5.2 billion) penalty payment to the United States, from a total of US$2.3 billion for its role in the 1Malaysia Development Bhd (1MDB) financial scandal.
According to a Bloomberg report, details related to the 10-day deadline were obtained from a court filing made by the US government to a federal court in Brooklyn, New York, on June 4.
“Goldman Sachs entered into a deferred prosecution agreement with the US Justice Department last year.
“On Wednesday, US district judge Margo Brodie in Brooklyn, New York, is expected to sentence the bank’s Malaysia unit to pay US$500,000 in the case.
“The sentencing of the Malaysia unit will trigger the larger payment by the New York-based bank,” the report stated.
The US multinational investment bank and its Malaysian unit were initially charged with conspiring to engage in a five-year scheme to violate US anti-bribery laws, which it has since admitted.
The report said that Goldman Sachs earned more than US$600 million in fees while making illicit payments to officials in Malaysia and Abu Dhabi to get and retain business for the bank from the Malaysian sovereign wealth fund.
“The agreement allows the bank to defer prosecution as long as it continues to cooperate with the US and submits compliance reports.
“Goldman Sachs said when the accord was announced that it was pleased to be putting the matter behind it to resolve government and regulatory investigations,” the report added.
The accumulated debt incurred by both 1MDB and former subsidiary SRC International Sdn Bhd as of June 3 stands at RM39.66 billion and RM2.57 billion, respectively.
The exposure of the scandal saw former prime minister and then finance minister Datuk Seri Najib Razak subsequently charged and convicted of abuse of power, criminal breach of trust and money laundering in relation to RM42 million belonging to SRC International.
While Najib is currently appealing against the decision, he is also facing trial for various other offences relating to 1MDB, including the misappropriation of RM2.28 billion. – The Vibes, June 9, 2021
