1Malaysia Development Berhad still in debt worth $7.8 billion after five years

The 1Malaysia Development Berhad (1MDB) reported that it still had an estimated 32.3 billion Ringgit ($7.80 billion) in outstanding debt as of September 2020.

In 2015, Malaysia’s former Prime Minister Najib Razak was accused of getting 2.67 billion cash from 1MDB to transfer the funds in his personal bank accounts.

The former prime minister was removed from office four months ago and was given a 12-year jail sentence for criminal breach of trust, money laundering, and abuse of power related to the scandal.

According to United States authorities, the funds were stolen by people connected to the former prime minister. Moreover, Malaysian authorities said that billions of dollars remained unaccounted.

Goldman Sachs (GS) stated that it would help Malaysia recover $1.4 billion in 1MDB-linked assets.

In addition, Goldman Sachs had agreed to pay $3.9 billion to Malaysia in exchange for dropping all criminal charges against the bank.