SC issues show-cause letter to Goldman Sachs


Securities Commission Malaysia Annual Report 2018 Media Conference From left to right: Mr. Ong Liang Heng, Executive Director, Chairman's Office, Mr. Eugene Wong, Managing Director, Corporate Finance & Investments and Datuk Syed Zaid Albar, SC Chairman. - AFIQUE YUSOFF/The Star

Securities Commission Malaysia Annual Report 2018 Media Conference From left to right: Mr. Ong Liang Heng, Executive Director, Chairman's Office, Mr. Eugene Wong, Managing Director, Corporate Finance & Investments and Datuk Syed Zaid Albar, SC Chairman. - AFIQUE YUSOFF/The Star

PETALING JAYA: The Securities Commission (SC) has issued a show-cause letter to Goldman Sachs, which is embroiled in multi-jurisdictional investigations into Malaysian state fund 1Malaysia Development Bhd (1MDB).

A show-cause letter typically requires the recipient to explain why they should not be subject to disciplinary action.

“We have issued a show-cause to Goldman Sachs,” SC chairman Datuk Syed Zaid Albar said at a press conference yesterday.

However, he did not say when the letter was issued or provide any details about its contents. If the commission finds that a financial institution had violated regulations, its powers include issuing fines or revoking operating licences.

Goldman Sachs did not immediately respond to a request for comment.

Apart from facing civil lawsuits, Goldman Sachs is being investigated by Malaysian authorities and the US Department of Justice for its role as underwriter and arranger of three bonds that raised US$6.5bil for 1MDB.

Goldman Sachs has consistently denied wrongdoing and said certain members of the former Malaysian government and 1MDB had lied to the bank about the use of the proceeds from the bond sales. — Reuters

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