by BLOOMBERG/ pic by BLOOMBERG
GOLDMAN Sachs Group Inc and Malaysia have signed an agreement to finalise the US$3.9 billion (RM16.35 billion) settlement over the 1Malaysia Development Bhd (1MDB) scandal, according to people familiar with the matter.
The US bank formalised the deal yesterday and must make a US$2.5 billion cash payment to Malaysia within 10 days, said the people, who asked not to be identified as the information is private.
The pact reached in July was a major step toward resolving the scandal surrounding 1MDB.
It involved Goldman agreeing to pay US$2.5 billion in cash and guaranteeing the return of US$1.4 billion of 1MDB assets seized by authorities around the world, in exchange for Malaysia dropping charges against the bank.
The deal allowed the bank to move on from its worst scandal since the financial crisis, while the country gets to recoup much of the US$4.5 billion that prosecutors said were lost from 1MDB at a time when it’s seeking funds for its massive stimulus package.
Goldman is set to face a case management hearing over its criminal charges at a Malaysian court on Sept 4, a date that was set before the deal was struck.