Goldman Sachs claims it was deceived by previous Malaysian government as it faces charges over 1MDB
- Billions of dollars were allegedly stolen from the fund and used to buy everything from yachts to artwork
- Goldman has faced mounting questions about its role as the bank helped 1MDB raise US$6.5 billion through a series of bond issues
Goldman Sachs on Tuesday accused the former Malaysian government and state fund 1MDB of lying to the bank, after Kuala Lumpur charged the Wall Street titan over a massive financial scandal.
Malaysia’s attorney general on Monday filed criminal charges against the US bank and two of its ex-employees over the alleged looting of 1MDB.
Billions of dollars were allegedly stolen from the fund and used to buy everything from yachts to artwork, in an audacious fraud that involved former Malaysian leader Najib Razak and contributed to his government’s shock defeat at May elections.
Goldman has faced mounting questions about its role as the bank helped 1MDB raise US$6.5 billion through a series of bond issues.
Monday’s charges allege the bank’s subsidiaries and the two ex-bankers, working with a shadowy Malaysian financier, misappropriated US$2.7 billion, bribed officials and gave false statements as they helped 1MDB to raise the cash.
But Goldman said in a statement that “certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of proceeds from these transactions”.