KUALA LUMPUR: Malaysian prosecutors said Monday they will summon Goldman Sachs units in London and Hong Kong to appear at a June hearing of a case linked to corruption in state investment fund 1MDB, reports AFP.
The Wall Street titan is accused of misleading investors in the case when it helped 1MDB raise $6.5 billion through a series of bond issues in 2012 and 2013.Malaysian authorities are seeking fines in excess of the $2.7 billion allegedly misappropriated from the bond issues as well as the $600 million Goldman earned in fees.
Last December, Malaysia filed criminal charges against Goldman Sachs units in Singapore, London and Hong Kong as well as two of the bank’s former employees.
A representative from Goldman’s Singapore unit and a team of local lawyers appeared in a Malaysian court Monday for a pre-trial hearing.
Prosecutor Aaron Paul Chelliah told reporters that “fresh summonses” will be served on the bank’s Hong Kong and London offices ahead of the next pre-trial hearing on June 24. This would mean representatives from all three Goldman units would appear in court in June, he added.
Allegations that huge sums were looted from 1MDB and used to buy everything from yachts to artwork, in a fraud that involved former Malaysian leader Najib Razak, contributed to the last government’s shock defeat at May elections.
The new administration under Prime Minister Mahathir Mohamad has filed dozens of charges against Najib and barred him from leaving the country. The ex-premier has denied any wrongdoing.