KUALA LUMPUR: The government has responded to Goldman Sachs Group's arbitration request over a settlement agreement on the bank's role in the multi-billion 1Malaysia Development Berhad (1MDB) financial scandal.
The Attorney-General's Chambers in a statement said it had filed a reply to the London Court of International Arbitration (LCIA) and handed a copy of the document to Goldman Sachs today.
"According to Article 2.1 of the LCIA regulation, the government must submit its response to the LCIA court registrar within 28 days from the date of the application.
"We are committed to protecting our national interests throughout this entire proceeding," it said.
In 2020, Goldman Sachs settled with Malaysia by agreeing to pay US$2.5 billion in cash and guaranteeing the return of US$1.4 billion in assets, in exchange for dropping all criminal charges against the bank.
The government also demanded the return of US$600 million Goldman Sachs had pocketed as fees.
Malaysian and US prosecutors have alleged that the bond sales organised by Goldman Sachs for 1MDB provided one of the means for associates of former prime minister Datuk Seri Najib Razak to steal billions over several years from the fund.
The settlement is also an admission by Goldman Sachs over the misconduct of two of its former employees in the 1MDB fraud and corruption scheme.
On Aug 18, 2022, the accounting provided by the government to Goldman Sachs showed that it had not recovered US$500 million, and hence the government is entitled to the interim payment of US$250 million.
This was disputed by Goldman Sachs.