KUALA LUMPUR (Reuters) – The Malaysian government is re-evaluating a $3.9 billion settlement deal reached between the previous administration and U.S. investment bank Goldman Sachs (NYSE:GS) over the 1MDB financial scandal, state news agency Bernama reported on Monday.
Prime Minister Anwar Ibrahim said on Monday a government taskforce looking into 1MDB issues was scrutinising the 2020 deal with Goldman, adding that it was a matter of recovering public funds, Bernama reported.
“I agree (with a review) because from the start, I felt the settlement agreement was done hastily which led to many questions being raised,” Anwar was quoted as saying by Bernama.
Goldman Sachs agreed in 2020 to pay $2.5 billion in cash and guarantee the return of $1.4 billion in assets to Malaysia to settle a criminal probe into the bank’s alleged involvement in the multi-billion-dollar scandal, in a deal reached during the administration of Muhyiddin Yassin.
Goldman did not immediately respond to a request for comment.
Malaysian and U.S. authorities estimate some $4.5 billion were stolen from 1MDB between 2009 and 2014, in a globe-spanning scheme that implicated high-level government and banking officials in Malaysia and elsewhere.
Goldman had helped 1MDB raise $6.5 billion in two bond offerings, earning itself $600 million in fees, according to the U.S. Justice Department.
Since taking office last November, Anwar has sought to review previous governments’ decisions on 1MDB in a bid to recoup money embezzled from the fund.
In February, Abu Dhabi’s International Petroleum Investment Co and its unit Aabar Investments PJS agreed to pay Malaysia $1.8 billion to settle a separate legal dispute over 1MDB.
1MDB is the subject of corruption and money-laundering investigations in at least six countries.
Last month, former Goldman banker Roger Ng was sentenced by a U.S. court to 10 years in prison, after being convicted of helping to loot billions of dollars from 1MDB.
