Singapore, U.S. To Pay Malaysia In Connection To Roger Ng Case

Singapore Malaysia relations
Singapore's Prime Minister Lee Hsien Loong and Malaysia's Prime Minister Mahathir Mohamad smile during a joint news conference in Putrajaya, Malaysia April 9, 2019. (Photo: REUTERS/Lai Seng Sin)

Sources familiar with the Goldman Sachs Group Inc. banker Roger Ng's controversy involving millions of funds have revealed that Singaporean authorities are working to return around 35 million Singaporean dollars to Malaysia.

According to The Star, a Singaporean court has finally paved the way for the money to be returned to Malaysia. Both Ng's lawyer and authorities in the city-state have not yet commented on the reports.

Ng has been charged both in the United States and Malaysia for having been involved in $6.5 billion bond sales that Goldman Sachs initially prepared for 1Malaysia Development Bhd (1MDB). A number of countries alleged that a huge portion of the money was taken from wealthy political figures.

In line with the controversy, it was confirmed on Monday that the Malaysian government has secretly allowed for the U.S. Department of Justice to take Ng under custody. The former Goldman Sachs banker had been behind bars in a Malaysian prison since November.

The Straits Times reported that two senior executives with knowledge of the situation said Ng was extradited to the U.S. and handed over to government officials over the weekend. The former financial services consultant is expected to arrive in the United States on Monday.

Ng was arrested in November after it was revealed that he abetted Goldman Sachs in billions. He has been charged by a Malaysian court with four counts of supporting his former employer in the sale of $6 billion bonds and guaranteed notes.

The U.S. DOJ has been aiming to take Ng under its custody as it continues to gather the information that could further support the case against Goldman Sachs and other people involved in the controversy.

Meanwhile, the U.S. is also expected to return $200 million to Malaysia's state find as part of the bid to give back misappropriated funds to the country. According to Reuters, Malaysian Prime Minister Mahathir Mohamad has been working with several nations to recover around $4.5 billion stolen from 1MDB.

"I think they know it is our money, so they will give back our money," Mahathir commented on the report. The fund was originally established by former Prime Minister Najib Razak and after his historical loss to Mahathir, the Pakatan Harapan (PH) government has been working to recover the money.

The U.S. is also expected to return $140 million in stakes from the sale under the New York Park Lane Hotel. Wanted Malaysian financier Low Taek Jho or Jho Low, who is allegedly the mastermind of the 1MDB fund misappropriation, surrendered the stakes. Jho Low is currently missing and previously denied the accusations.

© 2019 Business Times All rights reserved. Do not reproduce without permission.
Sign Up for Newsletters and Alerts