Malaysia wants Goldman Sachs to pay $7.5bn (£5.9bn) in reparations over its dealings with the state development fund 1MDB, only days after the country lodged criminal charges against the Wall Street bank.

The country’s finance minister, Lim Guan Eng, says the bank should cover the $6.5bn it helped raise for 1MDB through three bond sales that he says “were not used for national development but was siphoned out”.

He is also calling on Goldman to shell out $1bn to cover the $600m it charged in fees for its work, and the bond interest rates that were “higher than the market rate”.

Lim told the Financial Times: “We are not only looking at just the [bond] fees and issuance [volumes]. We are looking for a much larger sum.”

It easily surpasses the $1.8bn that Goldman Sachs has reportedly set aside to cover potential losses linked to legal actions over its work for 1MDB. “Their figure is $1.8bn. Ours is $7.5bn,” Lim said.

His call for reparations come only days after Malaysian prosecutors filed criminal charges against Goldman Sachs and two of its former bankers, Tim Leissner and Roger Ng Chong Hwa, who are accused of helping misappropriate $2.7bn, bribing officials and giving false statements when helping to issue bonds.

Facebook Twitter Pinterest Goldman Sachs has consistently denied any wrongdoing. Photograph: Brendan McDermid/Reuters

They are being charged alongside the former 1MDB employee Jasmine Loo Ai Swan and Low Taek Jho, a Malaysian financier who has been accused of masterminding the fraud.

It also emerged on Friday that Singapore has expanded its own criminal investigation into 1MDB to include Goldman Sachs. Authorities are looking at whether the $600m in fees from the three bond deals arranged between 2012 and 2013 flowed through its Singapore subsidiary, Bloomberg reported, citing sources.

Singapore police declined to comment on the report. Goldman said in a statement that it “continues to cooperate with all authorities investigating this matter”.

Goldman Sachs has been criticised for charging excessive fees, which are beyond the normal 1-2% that banks tend to charge for selling bonds.

However, the bank has said its fees were justified as it took on additional risks during the sale. Goldman purchased the bonds immediately while it sought external investors, since 1MDB was looking for quick cash.

US prosecutors – who have charged Low, Leissner and Ng over the scandal – alleged that around $4bn eventually vanished from 1MDB. It says the proceeds were used by conspirators to buy luxury real estate in New York and other prime locations, pricey artwork and to fund the production of Hollywood films including The Wolf of Wall Street.

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Goldman Sachs has consistently denied any wrongdoing and insists it was lied to about how the proceeds of the bond sale were used.

Responding to the Malaysian finance minister’s comments, the bank said in a statement: “The 1MDB bond offerings were meant to raise money to benefit Malaysia; instead, a huge portion of those funds were stolen for the benefit of members of the Malaysian government and their associates.

“Certain members of that government and 1MDB lied to Goldman about the use of proceeds from these transactions. 1MDB, whose CEO and board reported directly to the prime minister at the time, also provided written assurances to Goldman Sachs for each transaction that no intermediaries were involved. We intend to vigorously contest these charges.”