In the 1MDB bribery case, the global financial firm Goldman Sachs has agreed to pay $ 2.9 billion to about 21 thousand crore rupees as a penalty. This penalty will be given to end the criminal case. The US Department of Justice has announced this. It is being called the biggest penalty in American history.
Goldman Sash accepts the bribe
Acting US Assistant Attorney General Brian C. Rabbit said that Goldman Sachs had admitted involvement in a $ 1.6 billion bribe. This is the largest bribe in US records. The Malaysian unit of Goldman Sash has admitted in US courts the violation of bribery laws. In this case, there are criminal cases against Goldman Sash in 9 countries. As part of the deal to end these cases, Goldman Sash has accepted the bribe.
This is the case
Goldman Sachs helped the Government of Malaysia to raise about $ 6.5 billion for the 1MDB fund at around 48 thousand crores. Goldman Sachs raised $ 600 million in fees through bond sales in 2012-2013. The prosecutor alleges that Goldman Sachs diverted the amount to 1MDB officials and associates.
The lawsuit was filed in 2018
The case was filed by Malaysia’s Prosecutor in 2018 against three branches of the bank. Later, 17 current and former officers of Goldman’s Sash were also accused in the case. However, the bank had denied all the allegations. Under this agreement, all criminal cases against Goldman Sash, all its subsidiaries and its current ex-officials will be closed.
Goldman Sash activities in Malaysia will be banned
After accepting the bribe, Goldman Sash activities in Malaysia will be banned. However, its parent company will be allowed to avoid wrongdoing in court. The parent company of Goldman Sash pleaded not guilty in US court. Also, the company has agreed to postpone the case for three and a half years. During this time the regulatory monitoring will increase on the company.
Three officers have been charged
In this case, the US Justice Department has charged three officers, including two former Goldman executives. Out of this, former chairman of Southeast Asia from Goldman, Tim Leijner has admitted to being guilty. At the same time, a trial is going on against Goldman Sash Malaysia’s former Investment Banking Head Roger Ng and financier Lou Teek Zhao.