Goldman Sachs bankers ‘cheated’ Malaysian state fund
The country's officials vow to get money back through assistance from US department of justice
Kuala Lumpur/Singapore — Malaysian Prime Minister Mahathir Mohamad said bankers at Goldman Sachs “cheated” the country in dealings with state fund 1MDB and that US authorities have promised to help return the fees the Wall Street bank earned from the fund. The US investment bank has been under scrutiny for its role in helping raise funds through bond offerings for 1Malaysia Development Bhd (1MDB), which is the subject of corruption and money-laundering investigations in at least six countries. Goldman’s stock fell to a near two-year low on Monday after Malaysia’s minister of finance Lim Guan Eng said his country would seek a “full refund” of the almost $600m in fees the bank earned from raising $6.5bn for the fund. A spokesperson for Goldman Sachs on Monday said in an e-mail to Reuters that the bank denied any wrongdoing. The US department of justice (DOJ) has said about $4.5bn was misappropriated from 1MDB, including some money that Goldman Sachs helped raise, by high-level officia...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.