KUALA LUMPUR: Goldman Sachs only agreed to pay US$1.7 billion or 23.3 per cent of the US$7.5 billion demanded by the previous Pakatan Harapan administration to settle outstanding charges and claims related to the three bond transactions that the global investment bank arranged for 1Malaysia Development Bhd (1MDB).
This was revealed by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in his winding-up speech on the debate on the allocation set aside for his ministry under the 2021 Budget.
"The ministry takes note that the previous government demanded around US$7.5 billion from Goldman Sachs.
"However, Goldman Sachs, at the time, only offered to settle US$1.7 billion which is 23.3 per cent of the amount demanded (by the previous Pakatan Harapan administration)," he said.
Negotiations between the present Perikatan Nasional government and Goldman Sachs over the outstanding charges and claims related to the sales of bonds for 1MDB proceeded for five days beginning July 20.
"The outcome of negotiations was finalised with Goldman Sach agreeing to pay US$3.9 billion to the government to settle outstanding charges and claims related to the transactions," he said.
The settlement includes a cash payment of US$2.5 billion and a guarantee for full repayment of at least US$1.4 billion.