Goldman must pay M’sia US$7.5bil, says Lim

PUTRAJAYA: The apology by Goldman Sachs is not sufficient and it has to make reparation and compensation to Malaysia considering its partner’s role in the 1Malaysia Development Bhd (1MDB) scandal, said Finance Minister Lim Guan Eng.

He said the apology was necessary for this country and its people but Goldman Sachs must also bear and show its responsibility.

“Apology is not enough, but apology with US$7.5 billion, that’s what matters,” he said in a press conference announcing the appointments of Samurai Bond joint lead arrangers at the Finance Ministry here yesterday.

“Only when you pay reparation and compensation, that will be sufficient…we are seeking US$7.5 billion (reparation),” he added.

” Goldman should understand the trauma  suffered by the Malaysian people resulting  from the 1MDB scandal. ” 

Goldman Sachs Group Inc chief executive officer David Solomon on Wednesday apologised to the Malaysian people for the role of a former banker at the firm played in the 1MDB scandal.

Goldman helped arrange US$6.5 billion in bonds for 1MDB and Malaysia had filed criminal charges against the bank and two former employees for alleged theft.

Lim said Goldman must be accountable as this also involved a breach of financial duty where the banking industry had the obligation to make good the losses that Malaysia had suffered.

“Goldman should understand the trauma suffered by the Malaysian people resulting from the 1MDB scandal,” he added.

Asked whether the government would drop the charges if Goldman paid the reparation, Lim said: “If they pay us US$7.5 billion, then we will discuss it.” – Bernama