Guan Eng: Goldman Sachs should return RM2.4bil fees

GEORGE TOWN: American investment bank Goldman Sachs should return the US$588mil (RM2.4bil) in it was paid for 1MDB-related matters, says Lim Guan Eng.

The Finance Minister said the fees were for raising bonds totalling US$6.5 billion (RM23.29 billion) for the Malaysian state investment firm back in 2012 and 2013.

"They must pay us back this money, not only the US$588mil but much more than that," he said during a briefing on Budget 2019 at Hotel Equatorial Penang on Wednesday (Nov 7).

He said there were consequential losses due to the fees paid as it had cost Malaysia big losses.

This was in respond to Goldman Sachs chief executive officer David Solomon, who admitted that their employees had broken the law over 1MDB matters.

He said since Goldman Sachs has admitted to its involvement in the 1MDB financial scandal, it should undertake to return the fees it was paid.

Tim Leissner, a former partner for Goldman Sachs in Asia, had pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act, and agreed to forfeit US$43.7mil (RM181.8mil).

It was revealed that Goldman Sachs generated about US$588mil (RM2.4bil) in fees for raising three bonds worth US$6.5bil (RM23.29bil) in 2012 and 2013.

Goldman Sachs chief executive officer David Solomon told an interview with Bloomberg TV in Singapore recently that it was "distressing" to find two former Goldman Sachs bankers went around the bank's policies and broke the law in their dealings with 1MDB.