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Malaysia questions Goldman Sachs lawsuit over 1MDB settlement, saying it's premature
The Malaysian government has questioned a move by Goldman Sachs to file for arbitration in a dispute connected with the multibillion-dollar looting of a sovereign wealth fund
KUALA LUMPUR, Malaysia (AP) — The Malaysian government questioned Thursday a move by Goldman Sachs to file for arbitration in a dispute connected with the multibillion-dollar looting of a sovereign wealth fund.
Johari Abdul Ghani heads a task force to recover assets lost from fund known as 1MDB. He said it’s too early for arbitration since talks are still underway to resolve the conflict and accused the U.S. bank of trying to shift attention away from its payment obligations.
Under a 2020 deal, Goldman Sachs paid Malaysia $2.5 billion to resolve criminal charges over the 1MDB saga. It also guaranteed it would help recover $1.4 billion in 1MDB assets. including $500 million by August 2022. If it failed, it had to cough up $250 million as an interim payment. The two sides are at odds over the interim payment.
Malaysia says Goldman Sachs failed to recover the agreed amount last year and must pay the $250 million. The bank disagreed.