MOF confirms US$2.5 bln payment by Goldman Sachs

Goldman Sachs Group Inc has made the US$2.5 billion (US$1=RM4.17) payment to the Malaysian government to resolve outstanding claims related to 1Malaysia Development Bhd (1MDB).

“We confirm that the US$2.5 billion has been paid by Goldman Sachs and received via an escrow account on 27 August 2020," a Finance Ministry spokesperson told Bernama today.

An escrow account is an account where funds are held in trust whilst two or more parties complete a transaction.

The cash payment is part of a total settlement of US$3.9 billion which the group had agreed to in order to resolve outstanding charges and claims related to the three bond transactions that the Wall Street bank had structured and arranged for 1MDB.

Last month, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the balance of US$1.4 billion will be paid after the assets related to the misappropriated proceeds from the transactions have been returned to the government.

Before the current payment, the government has previously received US$620 million from the United States Department of Justice. The settlement brings the 1MDB funds to be returned to Malaysia to a total of US$4.5 billion.

-- BERNAMA