1MDB scandal: Malaysia’s criminal case against Goldman Sachs delayed until September after Mahathir Mohamad dismisses US$241 million compensation as ‘peanuts’

The US Department of Justice estimates US$4.5 billion was misappropriated from state fund 1MDB between 2009 and 2014

Malaysian prosecutors had previously issued summonses to three Goldman Sachs units, requiring them to respond to criminal charges

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Malaysian Prime Minister Mahathir Mohamad. Photo: Reuters

Published: 2:25pm, 24 Jun 2019Updated: 11:08pm, 24 Jun 2019

Malaysia’s criminal case against US investment bank Goldman Sachs involving US$6.5 billion 1MDB bonds will be postponed to September, a court ruled on Monday, after defence lawyers asked for more time to receive instructions from their clients abroad.

The announcement came two days after Malaysian Prime Minister Mahathir Mohamad told CNBC the 1 billion ringgit (US$241 million) in compensation offered by Goldman Sachs to the Malaysian government was “not adequate” and was in fact “peanuts”.

Malaysian prosecutors had previously issued summonses to three Goldman Sachs units in the UK, Hong Kong and Singapore, requiring them to respond to criminal charges filed against them over bond issues that the bank had arranged for state fund 1Malaysia Development Berhad (1MDB).

The US Department of Justice estimates US$4.5 billion was misappropriated from 1MDB between 2009 and 2014, including some of the funds that Goldman Sachs helped raise.

Goldman Sachs has consistently denied wrongdoing.

On Monday, a lawyer for the bank said Goldman Sachs (Asia) LLC, based in Hong Kong, had only received its summons in the past week, while another summons issued to the bank’s Singapore unit was incomplete, with just three out of four charges served.

“Under such circumstances, we ask for another date … so that we will have enough time to take instructions from our clients,” lawyer Hisyam Teh told the court.