Thursday, October 22, 2020

Malaysia sues Goldman Sachs for 1MDB scandal

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Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com He can be reached at: [email protected]

KUALA LUMPUR: Malaysia filed a lawsuit on Monday against US bank Goldman Sachs regarding the 1MDB scandal. In response to this lawsuit, Goldman Sachs accused the Malaysian government of deceiving the investment bank.

According to national news agency, Malaysian Authority sued the bank and two former Goldman Sachs employees for alleged involvement in corruption and money laundering in the 1MDB case.

Malaysia’s Attorney General, Tommy Thomas, said it would demand jail sentences and billions of dollars in fines against Goldman Sachs and four individuals accused of embezzling US $ 2.7 billion from Malaysia’s 1MDB.

“Previous Malaysian government officials and 1MDB lied to Goldman Sachs, outside the scheme and others about using transactions,” said Goldman Sachs spokesman Michael DuVally. “The 1MDB CEO and board of directors reported directly to the prime minister at the time, also giving collateral is written to Goldman Sachs for each transaction that does not involve an intermediary.

The government of the former Malaysian prime minister, Najib Razak, established 1MDB in 2009.

The US Department of Justice estimates that around US $ 4.5 billion was misused by 1MDB high officials and colleagues between 2009 and 2014.

Goldman Sachs said the lawsuit did not affect the business as a whole, but its shares had dropped 2.8 percent on the New York Stock Exchange(NYSE) on Monday.

Goldman Sachs is under the supervision of legal authorities over its alleged role in helping to disburse loans of US $ 6.5 billion through three bond offerings for 1MDB, which are the subject of investigations in six countries.

Malay Mail details three bonds, namely US $ 1.75 billion issued by 1MDB Energy on May 18, 2012, obligation US $ 1.75 billion from 1MDB Energy on October 17, 2012, and US $ 3 billion bonds (IDR 43.5 trillion) from 1MDB Global Investment on March 16, 2013.

The Malaysian Attorney General noted that a bonus to Goldman Sachs of US $ 600 million to receive 1MDB bonds exceeded market levels, indicating that the employees and directors of the US investment bank had received a large bonus from 1MDB.

Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com He can be reached at: [email protected]

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