Malaysia Calls for Goldman to Pay Billions -- WSJ
January 21 2019 - 3:02AM
Dow Jones News
By Yantoultra Ngui
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (January 19, 2019).
PUTRAJAYA, Malaysia -- Malaysia's finance minister waved off an
apology from Goldman Sachs Chief Executive David Solomon for the
role of one its then-bankers in the scandal surrounding state
investment fund 1Malaysia Development Bhd., saying it wasn't
enough.
Lim Guan Eng said Friday that the only apology that would matter
is one that comes with full reimbursement and reparations for the
$6.5 billion the 1MDB fund raised with the investment bank's help.
Prosecutors say much of the money was later siphoned off, with
several hundred million dollars going to the personal accounts of
then-leader Najib Razak.
The former prime minister has pleaded not guilty to multiple
charges of money laundering and other offenses.
"Only when you pay reparation and compensation, then that will
be sufficient," Mr. Lim told reporters, saying an appropriate
figure would be $7.5 billion.
He added that Malaysia would consider dropping charges it filed
against Goldman Sachs if it was compensated for the full amount
raised.
"As we have stated previously, Goldman Sachs was lied to by
certain members of the former Malaysian government and 1MDB," a
spokesman for the investment bank said. "We intend to vigorously
contest the charges brought against us."
Goldman Sachs has been dragged into the scandal at 1MDB because
of its role as underwriter and arranger for three bond sales that
raised $6.5 billion for the fund. Much of the total has gone
missing, sparking a multinational investigation from Switzerland to
the U.S. It also contributed to the defeat of Mr. Najib's
government in elections in May.
U.S. prosecutors charged two former Goldman bankers in November
in relation to the theft of billions of dollars from 1MDB.
Tim Leissner, Goldman's former chairman for Southeast Asia,
pleaded guilty to conspiring to launder money and violating
antibribery laws for his role in the affair. The other former
Goldman banker, Roger Ng, was arrested in Malaysia in November at
the request of U.S. authorities.
He is in custody facing extradition to the U.S. to face criminal
charges relating to the scandal and couldn't be reached for
comment. His lawyer couldn't immediately be reached for
comment.
Malaysia also filed criminal charges against Goldman Sachs last
month for its role in arranging the bond issues.
Mr. Solomon, the chief executive, apologized to the Malaysian
people for Mr. Leissner's involvement in the scandal during a
conference call Wednesday to discuss the bank's fourth-quarter
results.
"At least he accepted that they have to bear and shoulder some
responsibility," Mr. Lim said. "But that apology is
insufficient."
Write to Yantoultra Ngui at yantoultra.ngui@wsj.com
(END) Dow Jones Newswires
January 21, 2019 02:47 ET (07:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Goldman Sachs (NYSE:GS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Goldman Sachs (NYSE:GS)
Historical Stock Chart
From Sep 2023 to Sep 2024