Sorry no cure, we want compensation - minister to Goldman Sachs
Finance Minister Lim Guan Eng has described Goldman Sach Group Inc's apology to the Malaysian people over the 1MDB scandal as inadequate...
Lim says the bank should understand the agony suffered by the Malaysian people due to the 1MDB scandal.
Finance Minister Lim Guan Eng has described Goldman Sach Group Inc's apology to the Malaysian people over the 1MDB scandal as inadequate.
Speaking to reporters in Putrajaya today, he said the bank must follow-up with compensation to the tune of US$7.5 billion.
“An apology is not enough. Apologise with US$7.5 billion,” he added.
However, Lim appreciated that Goldman had shown some degree of responsibility for the scandal.
“It (the apology) was necessary, but not sufficient. Only when you pay compensation would it be sufficient. We are seeking US$7.5 billion (in compensation). We hope they will follow up their apology with this.
“They said it clearly that they were cheated by their staff and top government officials from the previous (Malaysian) government at the highest level. I think you know who (which official) that can be,” he added in an obvious allusion to former premier Najib Abdul Razak.
However, Lim pointed out that Goldman must accept accountability in the matter.
“I think the banking industry has an obligation to make good on the losses we suffered. Goldman should understand the agony and trauma suffered by the Malaysian people due to the 1MDB scandal,” he added.
The minister also asked if Goldman would have apologised for the scandal if there were no change of government in Malaysia.
“It is such a huge and massive bank, it is not easy to get an apology from them. Yes, in some ways it is good, but it is not adequate unless it is followed up with compensation,” he reiterated.
Asked if the government would withdraw the criminal charges it filed against Goldman last December in the event compensation is paid, Lim said: “(Give) US$7.5 billion, then we can discuss.”
Goldman Sachs Group chief executive officer David Solomon had apologised to the Malaysian people over former banker Tim Leissner's role in the 1MDB scandal.
However, he stressed the bank conducted due diligence before every transaction.
“It's very clear that the people of Malaysia were defrauded by many individuals, including the highest members of the prior government,” he said.
Goldman is being investigated by Malaysian authorities and the US Department of Justice (DOJ) for its role as underwriter and arranger of three bond sales that raised US$6.5 billion for 1MDB.
Last year, US prosecutors charged two former Goldman bankers for the theft of billions of dollars from 1MDB.
Leissner, a former partner for Goldman in Asia, pleaded guilty to conspiracy to launder money and violate the Foreign Corrupt Practices Act.
