The Malaysian Prime Minister has said that the US Department of Justice would help return money claimed by Goldman Sachs for 1MDB transactions


Prime Minister of Malaysia, Mahathir Mohamad, expressing after receiving an honorary doctorate in law from the Yong Siew Toh Conservatory of Music of the National University of Singapore, Singapore, the November 13, 2018. REUTERS / Edgar Su

SINGAPORE (Reuters) – Malaysian Prime Minister Mahathir Mohamad said on Tuesday that US prosecutors had promised to help return money to Goldman Sachs.GS.N) charged for his dealings with the Malaysian public fund 1MDB.

The US investment bank is under scrutiny for its role in fundraising through bond offerings for 1Malaysia Development Bhd (1MDB) TERRN.UL, which is being investigated for bribery and money laundering in at least six countries.

The US Department of Justice said about $ 4.5 billion had been diverted from 1MDB, including funds raised by Goldman, by fund officials and their associates from 2009 to 2014. US prosecutors have initiated criminal proceedings against two former bankers of Goldman Sachs. earlier this month.

When asked if he had formally asked the US Department of Justice to help return the money that Goldman had charged for his transactions with 1MDB, Mahathir said:

"It takes a little while, but they (the Department of Justice) have promised to return the money," he said on the sidelines of a speech in Singapore.

Goldman Sachs group bankers "misled" Malaysia in its dealings with the 1MDB public fund, Mahathir said in an interview with the US-based news channel CNBC, aired earlier on Tuesday.

Report by Aradhana Aravindan; Written by John Geddie; Edited by Raju Gopalakrishna

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