KUALA LUMPUR: Malaysia has dropped criminal charges against Goldman Sachs over its role in the 1MDB scandal, a lawyer for the global bank said on Friday.
Former Malaysian prime minister Najib Razak and his cronies were involved in embezzling billions of dollars from the sovereign wealth fund 1Malaysia Development Berhad. The money was used to buy expensive artwork, real estate and a massive luxury superyacht.
Goldman’s role came under scrutiny over bond issues totalling $6.5 billion it helped arrange for the investment vehicle. Malaysia claimed large amounts were misappropriated during the process.
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Malaysian authorities pursued those involved in the scandal and filed charges against the Wall Street titan. However, state news agency reported that prosecutors told a Kuala Lumpur court they no longer intended to pursue them. Hisyam Teh, a lawyer for the bank, confirmed that acquittal orders were granted.
Goldman last month paid Malaysia $2.5 billion as part of a settlement over its role in the scandal, guaranteeing that at least $1.4 billion in assets acquired with misappropriated funds would be recovered.
Prime Minister Muhyiddin Yassin said Malaysia would receive a total of $4.5 billion, together with 1MDB-linked funds already handed back from the United States.
Najib was unseated in 2018 polls in part due to public anger over the scandal and was jailed for 12 years in July after the first of several trials linked to 1MDB scam.
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