21-8-2023 (KUALA LUMPUR) Datuk Seri Anwar Ibrahim, the Prime Minister of Malaysia, is considering taking legal action against Goldman Sachs in an effort to recover funds related to the 1Malaysia Development Berhad (1MDB) money laundering scandal.
During an exclusive interview with CNBC’s Martin Soong, Anwar expressed his intention to pursue legal action against Goldman Sachs, stating that it was necessary to recover the stolen funds. Anwar emphasized that Goldman Sachs was complicit in the crime and had not been cooperative in returning the misappropriated funds.
“We’ll have to reopen negotiations with Goldman Sachs because they were complicit in the crime. Unfortunately, they have not been too forthcoming, and we will, therefore, have no choice but to pursue this. Why must I punish the people of Malaysia by having to pay half the profits made by them? I just don’t say we should negotiate. It should return. I’m not discounting the possibility of proceeding again, the issue (of) lawsuits,” Anwar stated in the interview.
Goldman Sachs admitted its role in the largest foreign bribery case in US enforcement history in 2020 and reached several international settlements totaling billions of dollars to resolve investigations into its fundraising for 1MDB. As part of the settlements, Goldman Sachs agreed to repay Malaysia $3.9 billion (RM18.14 billion) to withdraw criminal charges and waive future charges against the bank. However, Anwar’s administration has deemed this sum inadequate.
In the interview, Anwar commended Malaysian agencies for recovering up to 68% of the total amount misappropriated during the 1MDB scandal, describing it as an “impressive feat.” However, he stressed that he was not satisfied with that outcome.
Anwar revealed that Malaysian agencies were still engaged in discussions with Goldman Sachs, albeit acknowledging that ongoing negotiations were complex. He also noted that pursuing lawsuits in the United States would be costly and suggested that “other routes” might be explored.
Anwar emphasized the importance of addressing issues related to governance and called on Western countries, particularly the United States, to support Malaysia’s efforts to recover the funds. He stated, “So it’s only fair we talk about governance, and these western countries – the United States, talking about democratic accountability, rule of law – to be supportive of our efforts to regain (the money).”
Anwar concluded by underscoring his determination to recover the misappropriated funds, stating, “As I’ve always said, you assault me, I can forgive you; you put me in jail, I forgive you; but you steal from the people, I will have to get it back.”
