PH: Return of US$3.9B Proof of 1MDB Fraud

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The return of US$3.9 billion (RM16.6 billion) from Goldman Sachs is proof of wrongdoing in 1Malaysia Development Bhd, said the Pakatan Harapan presidential council.

Even though a settlement has been reached on the matter, the process to attain justice is not yet completed and must be continued, it said.

“The return of the money is proof of theft (in 1MDB during the Najib Razak administration),” said the council in a statement, issued by PKR president Anwar Ibrahim, DAP secretary-general Lim Guan Eng and Amanah president Mohamad Sabu, today.

It said individuals identified by the US Justice Department as playing a part in the fraud, like “MO1” and Low Taek Jho, better known as Jho Low, must be put on trial.

MO1, which stands for “Malaysian Official No. 1”, is widely believed to be Najib.

“They cannot be allowed to go free just like that,” said the statement.

Najib is already on trial for allegedly siphoning off 1MDB funds, while Low has yet to be arrested.

The council said it was only under the PH government that the process to have the money returned began in earnest.

It said the PH administration rejected Goldman Sachs’ initial offer to return only US$1.75 billion of the full claim amount of US$7.5 billion.

Yesterday, Malaysia reached a US$3.9 billion settlement with the investment bank over the latter’s role in the 1MDB scandal, in exchange for the country ending all criminal proceedings against the Wall Street titan.

The billions plundered from the state investor bankrolled a global spending spree on artworks, real estate and a luxury yacht, among others.

Goldman Sachs came under scrutiny over US$6.5 billion in bonds it helped arrange for 1MDB, with Malaysia saying large amounts were misappropriated in the process.

The settlement between Putrajaya and the bank comprises a cash payment of US$2.5 billion and a guarantee that at least US$1.4 billion in assets bought with the misappropriated funds will be recovered. – TMI