Goldman Sachs offered 1 billion ringgit ($241.73 million) to compensate Malaysia for its role in a multi-billion dollar financial scandal involving a Malaysian state fund, but the prime minister of the Southeast Asian country described that amount as “peanuts.”
The American Financial giant helped state firm 1Malaysia Development Berhad, 1MDB, to raise $6.5 billion in 2012 and 2013. They also collected higher than typical fees of $600 million for the deals. Around $4.5 billion was later found missing from the fund, of which millions of dollars apparently ended up in the personal bank account of former Malaysian Prime Minister Najib Razak.
Malaysian Prime Minister Mahathir Mohamad made a statement saying that whatever Sachs has offered is not adequate. He is currently in Bangkok, Thailand where he is attending a summit for the Association of Southeast Asian Nations.
Mahathir said that Malaysia’s finance ministry will decide the adequate amount of compensation and negotiate a deal with Goldman Sachs. He also added that 1 billion Malaysian ringgit, which amounts to about 250 million, is “peanuts”.
Goldman refused to comment on any of this.
The bank has come under careful examination multiple times for its involvement with 1MDB. The US persecutors charged two of the former bankers from the company and Malaysia filed financial charges against the firm.
Goldman Sachs Chief Executive David Solomon had made an apology to the Malaysian people, but the bank also said that it was lied to in the deals it facilitated for 1MDB.