(Bloomberg) -- Malaysia’s top prosecutor said he’s ready to ratchet up a criminal case against Goldman Sachs Group Inc. for its role in the 1MDB affair by bringing executives of the U.S. bank to court, as the two sides remain far apart following several rounds of settlement talks.When the time is right,
Malaysia will press ahead with the prosecution of more than a dozen current and former Goldman Sachs directors “because we need them in the dock,” Attorney General Tommy Thomas said in a Friday interview. “The 17 directors committed crime in Malaysia, which is why they are being charged, so there is no reason why we are not going against them.”Thomas is leading Malaysia’s criminal case against Goldman Sachs, which was launched last year when charges were laid against three of the bank’s units. In August, Malaysia announced additional charges against 17 former and current directors, including Vice Chairman Richard J. Gnodde, who heads its international business in
London, and and J. Michael Evans, a former partner who’s now president of Alibaba Group Holding Ltd.Malaysia has had two or three rounds of negotiations with Goldman Sachs, and remains open to further talks, Thomas said. But a settlement remains distant, he added.“There is still a Pacific Ocean gulf between Malaysia and Goldman Sachs,” he said. “But as far as we’re concerned, the door to settlement is always open. They know where we are, they can come and see us if they want to find us.”Representatives for Goldman Sachs and Alibaba declined to comment.Read how Malaysia’s 1MDB scandal shook the financial worldThomas’s comments contrast with recent reports that Goldman Sachs is making progress in talks with U.S. and Malaysian authorities to put the 1MDB scandal behind it. The bank is said to be negotiating with the U.S. for a $2 billion settlement that would include an admission of guilt by a unit in Asia. A figure of at least $2 billion has been floated in the settlement talks with Malaysia, Bloomberg reported earlier this month.Thomas said he didn’t have direct knowledge of the progress of the U.S. settlement talks. But he said Malaysia had heard from contacts at the U.S.
Justice Department that a resolution remains “very far away.” Any agreements struck with the U.S. or other jurisdictions won’t affect the prosecution in Malaysia, he added.Seeking CompensationInstead, Thomas said he’s focused on preparing to prosecute Goldman’s units and directors in a trial which he expects to start in the middle of next year. He echoed Prime Minister Mahathir Mohamad in saying Malaysia will seek compensation from Goldman Sachs that includes the $6.5 billion value of bonds the bank arranged for 1MDB, as well as interest. That totals $8 billion to $9 billion, he said.At a hearing on Monday in Kuala Lumpur, the case against two of the three Goldman Sachs units facing charges was moved to the Malaysian High Court.“We prepare for the trial, and if there is settlement talks, we can do it simultaneously,” Thomas said in the interview at his office in Malaysia’s administrative capital of Putrajaya.Thomas’s appointment last year was part of Malaysia’s revived probe of the 1MDB scandal, which has also resulted in former premier Najib Razak standing trial on corruption charges. The state-owned fund, whose full name is 1Malaysia Development Bhd., is looking into claims against other banks, accountants, lawyers and subsidiary players who may also be involved in the scandal, Thomas said.Those cases could extend beyond Thomas’s two-year term, which is set to end in June 2020. He said he hasn’t decided whether he would seek to extend his stay.“I am happy with two years in the government, but I am happy to go back to the private sector,” Thomas said.(Updates with more details in 12th paragraph)\--With assistance from Anisah Shukry and Elffie Chew.To contact the reporters on this story: Yantoultra Ngui in Kuala Lumpur at yngui@bloomberg.net;Yudith Ho in Kuala Lumpur at yho35@bloomberg.net;Sophie Kamaruddin in Hong Kong at skamaruddin2@bloomberg.netTo contact the editors responsible for this story: Marcus Wright at mwright115@bloomberg.net, Ruth PollardFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.