08 Sep 1MDB scandal – Goldman settles and Najib sentenced

Malaysian Authorities have dropped all criminal charges against Goldman Sachs Group units post the US$ 3.9 billion settlement agreement with the bank in connection with the 1Malaysia Development Berhad or 1MDB scandal. As part of the deal, Goldman has paid US$ 2.5 billion in cash to Malaysia and has guaranteed the return of US$ 1.4 billion from 1MDB assets seized globally, in future years. In keeping with Settlement terms, Malaysia has dropped the criminal charges against the US bank and its various units and directors for their alleged role in misleading investors at the time of raising US$ 6.5 billion through sale of 1MDB bonds in 2012 and 2013, while being aware that some of the funds would be misappropriated.

The settlement with Goldman does not however affect Malaysia’s claims against other accused including Low Taek Jho (also known as Jho Low), Najib Razak (former prime minister), Roger Ng (the Goldman banker), senior 1MDB officials and others.

Najib was recently found guilty of corruption and sentenced to 12 years in prison and fined RM 210 million (US$ 50 million) by the High Court in the first trial over the 1MDB scandal. Roger Ng is in US to face charges linked to the scandal and additionally the Malaysian prosecutor is seeking to bring him back to Malaysia to face charges in the country. Jho Low and some of the senior ex-officials of 1MDB remain at large. The Malaysian authorities claim that they are hiding in various parts of China.