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KUALA LUMPUR, October 21 – Wall Street investment bank Goldman Sachs will pay more than US $ 2 billion (RM8.3 billion) in fines to the US Department of Justice (DOJ) as part of another settlement related to the global 1Malaysia Development. Berhad Financial Scandal (1MDB).
A report from New York Times (NYT) cited a source familiar with the investigations, who revealed that the latest round of settlements is caused by an Asian subsidiary of the investment bank that will have to plead guilty to corruption and bribery charges in the US. 1MDB, to be formally established. announced tomorrow.
The name of the Asian subsidiary was not disclosed.
“The parent company of the Wall Street bank will admit mistakes, the person said, but will not have to plead guilty as part of the deal with federal prosecutors,” the report said, referring to Goldman.
“The bank will also avoid appointing an external monitor to review its compliance procedures,” he said.
He also detailed that the payment of more than $ 2 billion from Goldman is part of the agreement that will be paid to the Department of Justice and the banking and securities regulators of the United States.
The latest round of settlements marks the end of a nearly two-year negotiation between the Wall Street bank and US federal prosecutors and the Department of Justice over the 1MDB scandal, which has undoubtedly tarnished the bank’s reputation. investment.
According to NOWGoldman has never before had to plead guilty in the 1MDB case despite its alleged involvement in past financial scandals, but warned that a statement of fact to be released in conjunction with tomorrow’s settlement would put the bank “in a bad light.”
Goldman had agreed in July this year to pay 2.5 billion dollars (10.37 billion ringgit) and guarantee more than 1.4 billion dollars (5.81 billion ringgit) in assets that the Malaysian government will recover for its role in the scandal. .
The Wall Street bank is preparing to part with more than 5 billion dollars (20.75 billion ringgit) in settlements and payments related to its involvement in the scandal.
The sovereign wealth fund 1MDB was the brainchild of Datuk Seri Najib Razak during his tenure as prime minister.
Goldman raised bonds worth around US $ 6.5 billion (RM26.97 million) for 1MDB, and the bank paid US $ 600 million (RM2.4 billion) for its stake.
It is alleged that around US $ 2.6 billion (RM10.8 billion) was diverted from the fund to the bank accounts of Najib and his associates, including fugitive financier Low Taek Jho, or Jho Low, and his stepson Riza Shariz Abdul Aziz.
Najib and his Barisan Nasional government were ousted from power in 2018, largely due to public anger over the scandal.
He faces at least four more trials related to 1MDB abuses and has already been convicted in one.
In July this year, Najib was found guilty of all seven counts in his SRC International 42 million ringgit corruption trial and received a 12-year prison sentence and a fine of 210 million ringgit, but his sentence was suspended. after an appeal.
Earlier this week, a former fundraiser for Donald Trump’s 2016 election campaign, Elliot Brady, pleaded guilty to conspiring to violate foreign lobbying laws after accepting US $ 9 million (RM37.35 million) from Jho Low to try to persuade the Trump administration to end 1MDB and take other alternatives.
Broidy yesterday agreed to waive US $ 6.6 million (RM27.4 million) and cooperate with investigators.
