PUTRAJAYA may seek the assistance of the Department of Justice to compel Goldman Sachs to return the US$600 million (RM2.4 billion) it earned as fees from arranging 1MDB’s bond sales, reports Reuters.
Malaysia is seeking a way to compel the investment bank to disgorge its profits from 1Malaysia Development Bhd and later claiming the sum, Reuters reported two sources as saying.
“There have been no official requests yet, but this is being discussed,” a government source was quoted as saying.
A financial industry source said back-channel talks between the government and the DoJ were under way.
It is still unclear how Malaysia will go about claiming the funds and what are the legal hurdles it may face.
It was reported yesterday that the Malaysian Anti-Corruption Commission has issued arrest warrants against former Goldman Sachs banker Roger Ng and former 1MDB official Shahrol Halmi.
Goldman Sachs raised nearly US$6.5 billion in three bond sales between 2012 and 2013 for 1MDB, the brainchild of former prime minister Najib Razak.
The American bank earned almost US$600 million as fees, which critics said far exceeded the normal 1%-2% to arrange bond sales.
Najib is now being investigated for money-laundering and corruption in relation to siphoning off funds from SRC International, a subsidiary of 1MDB. – June 8, 2018.