Up to $4.5bn of public money vanished from 1MDB, the state investment fund
stung. On August 9th Malaysia’s attorney-general filed criminal charges against 17 current and former executives at Goldman Sachs, an investment bank. The move marks an escalation in Malaysia’s efforts to deal with a scandal uncovered at, a state investment vehicle set up more than a decade ago by Najib Razak, then Malaysia’s prime minister. As much as $4.5bn of public money vanished from the fund between 2009 and 2015, according to America’s Department of Justice .
The 17 executives occupied senior positions at three subsidiaries of Goldman between May 2012 and March 2013. Five still work at the bank: among them is Richard Gnodde, the chief executive of its London-based subsidiary. During that time Goldman underwrote three bond offerings that raised $6.5bn for, $2.7bn later disappeared. Even so, the bank earned a whopping $600m in fees—a figure that Malaysia’s authorities claim was above the market rate.
The alleged mastermind of the scheme, Jho Low, a Malaysian financier, remains at large. Mr Najib, meanwhile, must contend with four trials related toGoldman has painted Mr Leissner as a rogue employee. The bank’s chief executive has even apologised to Malaysians for Mr Leissner’s role in the mess. But the former executive has said his cover-ups were in line with the bank’s culture.
The big question is how America’s crime-busters respond. Goldman is likely to be punished for the actions of Mr Leissner and others. But the size of a potential fine could depend on the extent to which they are judged to have acted in their employer’s interest. One tricky legal issue is whether Goldman is liable for the $2.7bn that was stolen from the bond-sale proceeds.
Indonesia Berita Terbaru, Indonesia Berita utama
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