Goldman Sachs 'involved' in embezzlement scandal, Malaysian PM says

Anwar admits that a lawsuit in the US would be very costly for the Malaysian government. Photo: HASNOOR HUSSAIN/REUTERS

Goldman Sachs Malaysian Prime Minister threatened legal action, saying the bank was «involved» in a multi-billion dollar embezzlement scandal.

Anwar Ibrahim said he could sue a Wall Street lender for his role in the 1MDB scandal, in which insiders stole billions of development funds for Malaysia.

Goldman Sachs helped 1MDB raise money and admitted in 2020 that it played a role in the scandal. The Wall Street Bank agreed to pay Malaysia $3.9 billion. In return, the government agreed to drop the criminal charges.

The deal was brokered by the previous government and Mr. Anwar, who won elections in November promising to make «Malaysia for all Malaysians», said the amount was too small.

In an interview with CNBC, Mr. Anwar said: “We will have to reopen negotiations with Goldman Sachs because they were involved in a crime.”

“Unfortunately, they were not too frank. And so we will have no choice but to continue with this.”

He said, “There are other ways. And I don't discount the possibility of retrial, the issuance of lawsuits.»

Riza Aziz, film producer who helped finance The Wolf from Wall Street, charged with embezzlement. Photo: LAI SENG SIN/REUTERS

Mr. Anwar acknowledged that litigation in the US would cost the Malaysian government dearly, “but you are stealing from the people, I will have to give it back,” he said.

1Malaysia Development Berhad (1MDB) is a public investment a fund founded in 2009 by then Prime Minister Najib Razak to support the Malaysian economy. economy by investing in tourism and green energy.

The fund has raised billions of dollars with the help of companies such as Goldman Sachs and Deutsche Bank.

However, insiders, including Razak, stole billions from the fund. The US Department of Justice found that more than $4.5 billion was transferred from 1MDB to purchase jewelry, luxury homes and art in one of the biggest financial scandals in history.

Razak last year began 12- summer prison sentence for participating in fraud. Razak's stepson Riza Aziz, a film producer who helped finance The Wolf of Wall Street, has also been charged with embezzlement and is due to stand trial in October 2024.

Two former Goldman Sachs bankers are also facing charges. due to mismanagement of 1MDB.

Roger Ng, a former employee of Malaysian origin, was sentenced in March by a Brooklyn court to 10 years in prison.

Tim Leissner, a former employee of Southeast Asia Chairman and Governor a Goldman Sachs director pleaded guilty to money laundering conspiracy in 2018 and is awaiting sentencing.

Goldman Sachs declined to comment.