11:37 GMT +312 November 2019
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    Malaysian Prime Minister Mahathir Mohamad

    Malaysia's Mahathir Rejects Goldman Sachs's $2 Billion Offer of Reimbursement for 1MDB Scandal

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    The Goldman Sachs Group has faced allegations from the Malaysian government over providing investors with the wrong information on $6.5 billion bond sales, with the company contributing to collecting billions for the 1Malaysia Development Berhad fund.

    Malaysia's Prime Minister Mahathir Mohamad has said the southeast Asian nation is not going to accept $2 billion from Goldman Sachs as compensation for the 1MDB scandal, the Financial Times reports.

    "Goldman Sachs has offered something like less than $2 billion”, the Prime Minister told the newspaper. "We are not satisfied with that amount so we are still talking to them . . . If they respond reasonably we might not insist on getting that $7.5 billion".

    ​It is not the first time Malaysian officials have declined a compensation offer from the US Goldman Sachs company. In June, the financial group had proposed to give $241.73 million as repayment on the money lost by Malaysia under then-Prime Minister Najib Razak.

    The scandal erupted after Goldman helped Malaysia's state-run fund 1Malaysia Development Berhad (1MDB) collect $6.5 billion in investment in 2012-13, and charged the company $600 million – a price much higher than typical Goldman fees. Former Malaysian Prime Minister Najib Razak has been accused of money laundering and embezzling about $4.5 billion from the fund.

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    reimbursement, United States, Malaysia
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