KUALA LUMPUR - In a surprising legal development, Goldman Sachs Group Inc. has initiated legal action against Malaysia in a UK court over the 1MDB issue.
The suit comes as part of an ongoing dispute related to a settlement agreement linked to its involvement in the 1MDB corruption scandal.
According to reports by news agencies, the lawsuit was filed for arbitration against the Malaysian government for alleged violations of their obligations concerning the appropriate crediting of assets against the guarantee provided by Goldman Sachs as part of the settlement agreement.
Quoting sources, Bloomberg News reports that the arbitration has been submitted to the London Court of International Arbitration.
This legal battle unfolds less than two months after Prime Minister Datuk Seri Anwar Ibrahim threatened to take Goldman Sachs to court, highlighting the escalating tensions between the two parties.
The core of their dispute revolves around a settlement agreement from 2020 in which Goldman Sachs committed to pay US$3.9 billion to resolve Malaysia's criminal investigation into its role in the vast 1MDB scandal.
In addition to this payment, Goldman Sachs was required to make a one-time interim payment of US$250 million if Malaysia had not received at least US$500 million in assets and proceeds by August 2022, as detailed in the bank's regulatory filing earlier this year.
The central point of contention is the disagreement over whether Malaysia successfully recovered at least US$500 million by the specified date and whether an interim payment is due, as asserted by Goldman Sachs.
Notably, both Malaysian and United States authorities estimated that approximately US$4.5 billion had been misappropriated from 1MDB in an elaborate scheme that implicated high-ranking officials.
This development comes just days after former Goldman Sachs banker Roger Ng was returned to Malaysia and he is now assisting the police on 1MDB-related investigations.
The probe is expected to focus on his methods of selling security notes and bonds believed to be acquired using 1MDB funds.
As the investigation progresses, police intend to freeze and seize all accounts and assets owned by Ng, including properties, vehicles, buildings, and bank accounts held abroad.
Ng had previously been granted a discharge not amounting to acquittal over charges related to Goldman Sachs' involvement in the 1MDB scandal.
However, in the US, Ng was found guilty of conspiring to embezzle hundreds of millions of dollars from 1MDB and sentenced to 10 years in prison. He was handed over to Malaysia to face related charges.
The police's investigation of Ng is expected to shed more light on the case and potentially uncover the whereabouts of fugitive businessman Low Taek Jho, also known as Jho Low, a central figure in the 1MDB scandal.
As the investigations continue, authorities are actively working with international partners to retrieve 1MDB assets overseas, which include properties in Singapore, bank accounts, and valuable paintings in the US.
The investigation into Jasmine Loo, a lawyer and 1MDB group strategic executive director, is also ongoing, with efforts to recover her assets valued at RM93.2 million linked to 1MDB. - The Vibes, October 12, 2023
_director_Datuk_M._Kumar.jpg)
