Goldman Sachs arbitration over 1MDB settlement “premature”, Malaysia says

KUALA LUMPUR (Reuters) – Malaysia’s 1MDB task force said on Thursday it viewed Goldman Sachs’ filing of arbitration proceedings against the country as premature, as both parties were still in the stage of good-faith discussions to resolve any dispute amicably.

Goldman Sachs Group (NYSE:) sued Malaysia in a British court on Wednesday, as tensions escalate over a settlement agreement on the bank’s role in the multi-billion dollar 1MDB corruption scandal.

Goldman Sachs in 2020 had agreed to pay $3.9 billion to settle Malaysia’s criminal probe over its role in the scandal.

The task force said Goldman Sachs had requested an extension on a deadline of discussions, amid a dispute between the two parties on whether Malaysia had recovered at least $500 million as of August 2022 and whether any interim payment was due.

The deadline on the extension was set to expire on November 8, 1MDB task force chairman Johari Abdul Ghani said in a statement.

“At this juncture… parties are still considered to be in the amicable good faith discussions stage and therefore as an aggrieved party, the 1MDB Taskforce views Goldman Sachs’ initiation of arbitration proceedings as premature and without due consideration of necessary prerequisites,” Johari said.