Anwar says ‘inexcusable’ if Goldman complicit in 1MDB

  • Nation
  • Tuesday, 6 Nov 2018

PETALING JAYA (Bloomberg): Malaysia’s leader-in-waiting said it would be "inexcusable" if Goldman Sachs Group Inc. were complicit in the scandal surrounding state investment company 1Malaysia Development Bhd., calling it a failure of governance by financial institutions.

There are ongoing discussions about recovering money from financial institutions including Goldman, Datuk Seri Anwar Ibrahim said in an interview with Bloomberg Television at the New Economy Forum in Singapore. He is expected to replace 93-year-old Mahathir Mohamad as prime minister in a year or two.

Goldman has been under scrutiny for years for its role in raising $6.5bil for 1MDB and for the nearly $600 million in fees and commissions it earned from the bonds. 1MDB is at the center of a global scandal involving claims of embezzlement and money laundering, which have triggered investigations in the U.S., Singapore, Switzerland and beyond.

“They must understand that to be complicit to the excesses and crime, is inexcusable and in the process the country and the people suffer,” Anwar said in response to a question on whether he plans to meet with Goldman executives who are also attending the NEF forum. “We must get hold of every cent that has been taken out of the country by either the leaders or those complicit in this action.”

The 1MDB Deals That Continue to Haunt Goldman Sachs: QuickTake

“We need to go to due process, but if they are prepared to negotiate, they have to return" about $600 million of the fees and commissions, he said, adding that he has no plans to meet with Goldman executives in the city-state as investigations are ongoing.

The New Economy Forum is being organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News.

In the first charges against individuals by U.S. prosecutors made public last week, at least three senior current or former Goldman executives were implicated, with its lead banker for the bond sales confessing to bribery and money laundering. Goldman has previously said it believed the money it was raising for 1MDB would be used for development projects, and that fees and commissions “reflected the underwriting risks" it had assumed.

Former Malaysian premier Najib Razak is facing several charges of wrongdoing related to 1MDB, and has pleaded not guilty. – Bloomberg