SUMMARY
- Anwar Ibrahim, Malaysia’s PM, determined to retrieve 1MDB funds.
- Goldman Sachs's $3.9 billion agreement under scrutiny.
- Malaysia's relentless pursuit: 68% of lost funds already recovered.
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Malaysia's top leader, Prime Minister Anwar Ibrahim, is on a mission: to retrieve the money lost in the notorious 1MDB financial scandal.
Speaking candidly with CNBC's Martin Soong, Anwar made it clear that reopening negotiations with Goldman Sachs, accused of being accomplices in the scheme, is on the table. This could even include a possible lawsuit, given the bank's hesitancy in addressing the matter head-on.
When Goldman Sachs played a role in the mismanagement of the 1Malaysia Development Berhad sovereign wealth fund, it landed itself in hot water. But in 2020, a seemingly gracious move saw Goldman Sachs agreeing to pay Malaysia $3.9 billion, after the charges against them were dropped. However, the Anwar-led administration isn't entirely pleased, arguing that the sum isn't quite enough – a deal struck by a preceding government.
In a riveting chat set to air on The CNBC Conversation, Anwar took a moment to praise Malaysian agencies. They've managed to recover a whopping 68% of the total funds misappropriated during the scandal. But don’t be mistaken, he's not resting on these laurels. Anwar divulged that dialogues with Goldman Sachs are ongoing, albeit a tad intricate. Legal battles in the U.S. are pricy, but he's exploring every avenue.
Goldman Sachs, when approached about the interview, pointed CNBC to their recent financial report. As per the prior $3.9 billion agreement, the bank promised a $2.5 billion direct cash payment, ensuring the return of a minimum of $1.4 billion from assets linked to the 1MDB fiasco. A point of contention remains: whether Malaysia has indeed secured the promised $500 million by August 2022. If there's no consensus, arbitration is the next step.
A face-off between Malaysia and Goldman Sachs looms on the horizon. Goldman Sachs has a ticking clock, with a deadline till August 2025 to return the agreed $1.4 billion in assets. Anwar, in his candid style, encapsulates the situation, emphasizing that Goldman Sachs should support Malaysia's endeavor to reclaim the stolen funds. He juxtaposes this with his personal journey, drawing parallels between his past struggles and his relentless pursuit of justice for Malaysia.
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