COMMENT | The US$3.9 billion deal with Goldman Sachs by Malaysia is the second consecutive lousy deal over 1Malaysia Development Bhd, or 1MDB, following upon the rotten one the prosecution made in Najib Razak’s stepson, Riza Aziz’s money laundering case. Here’s why.
That so-called settlement is not worth US$3.9 billion – the cash sum is just US$2.5 billion. The remaining US$1.4 billion is a guarantee by Goldman Sachs that at least that sum will be obtained by ongoing efforts to recover monies embezzled from the three, US$6.5 billion, in bonds that Goldman had arranged for Malaysia in 2012 and 2013.
With intensive moves by the US Department of Justice (DOJ), which published a report showing money trails of how over US$4.5 billion was stolen from 1MDB, to recover assets in the US bought with the loot, and similar efforts elsewhere, it is very likely that much more than US$1.4 billion will be recovered eventually.