Putrajaya mum on recovered 1MDB funds due to Goldman suit, MP told

KUALA LUMPUR, Oct 24 — The federal government will not be issuing public statements about the recovery of monies linked to 1Malaysia Development Berhad (1MDB) abroad since it is currently an ongoing court matter, according to Datuk Seri Azalina Othman Said.

The minister in the Prime Minister’s Department for law and institutional reforms was referring to the Request for Arbitration received from The Goldman Sachs Group Inc on October 11.

“Yang Berhormat’s question pertains to matters currently in dispute with Goldman Sachs in the London Court of International Arbitration.

“Thus, all statements in regard to the aforementioned matter amounts to ‘sub judice’ and could affect or jeopardise the country’s interest in the ongoing dispute,” she said in a parliamentary reply to Bukit Bintang MP Fong Kui Lun.

It was previously reported that Goldman Sachs was suing Malaysia over the settlement amount as tensions escalate over a settlement agreement on the bank’s role in the multi-billion-dollar 1MDB corruption scandal.

A spokesman for the firm was quoted as saying they filed for arbitration against Malaysia for violating its obligations to appropriately credit assets in the settlement agreement to recover assets.

Goldman Sachs in 2020 had agreed to pay US$3.9 billion (RM18.4 billion) to settle Malaysia’s criminal probe over its role in the scandal.

If Malaysia had not recovered US$500 million by August 18, 2022 (two years from the signing of the settlement agreement), Goldman Sachs would also be required to pay US$250 million as interim payment.

Goldman Sachs disputed the accounting a year ago that claimed Malaysia had not recovered US$500 million and both parties entered into good faith discussions that were supposed to last for three months but were extended four times.

The last extension was given on August 8, 2023, and this is set to expire on November 8, 2023 (4th extension).

In response, 1MDB task force chairman Datuk Seri Johari Abdul Ghani said the filing of arbitration proceedings against the country was premature and an attempt to detract and divert attention away from their obligation to pay US$250 million as part of their previously agreed settlement.