PETALING JAYA: Tun Dr Mahathir Mohamad says he has known for quite some time the involvement of Goldman Sachs in transactions that resulted in losses for 1Malaysia Development Berhad (1MDB).
The Prime Minister said the move by the United States’ Department of Justice (DoJ) in filing criminal charges against former Goldman Sachs executive Time Leissner and former bank official Ng Chong Hwa or Roger Ng as well as fugitive financier Low Taek Jho merely confirmed it.
“We have known about it all along,” Dr Mahathir said at a press conference today.
“Now he (Leissner) has pleaded guilty, although (previously) he denied this,” Mahathir said on Leissner’s guilty plea to two money laundering charges involving discrepancies linked to 1MDB.
“Action will be taken by the United States (Department of Justice), because the offence took place there.
“For offences that involve us (happened in Malaysia) we will take action and if the US requests extradition, we will do so.”
The Edge reported today that Leissner had pleaded guilty to two charges of money laundering and conspiring to corrupt foreign officials.
It was also reported that he had agreed to forfeit US$43 million as part of his guilty plea. His sentencing has been fixed for Jan 17, 2019.
On the Equinaminity yacht previously owned by fugitive financier Low Taek Jho or Jho Low, Dr Mahathir said he had no knowledge on the outcome of its sale.
“I have not received information about that. I want to purchase it, but I don’t have enough money.” – FREE MALAYSIA TODAY
Malaysia seeks talks with Goldman to recover US$600 million 1MDB fees
NEW YORK: Malaysia is seeking direct talks with Goldman Sachs Group Inc to recoup more than US$600 million the bank earned from raising funds for troubled state fund 1MDB, the country’s leader-in-waiting Anwar Ibrahim has confirmed.
Goldman has lost US$11 billion from its market value since Anwar said on Nov 12 that the country is seeking a “full refund” of what the bank made for arranging bond sales for scandal-ridden 1MDB. Anwar expects that market pressure will be enough to push the lender to come to the negotiating table but notes a lawsuit is a second option.
“We’re quite optimistic that they’re responding,” Anwar said in an interview in Istanbul on Nov 27. “They have been adversely affected by all this and we have options: negotiate with them, which is probably best for Malaysia,” or litigation, he said.
Malaysia has held initial discussions with the US Department of Justice to seek help to recoup the funds, Anwar said. The US filed forfeiture lawsuits against US$1.7 billion of assets that it said were bought using money stolen from 1MDB, including mansions in California, luxury condos in New York, jewellery, artworks, and a US$250 million yacht once owned by fugitive financier Low Taek Jho.
The yacht has since been put up for auction in a judicial sale process, with bidding closed yesterday.
Global investigations into 1MDB have picked up pace since Malaysia’s new government reopened a domestic probe and Tim Leissner, Goldman’s former Southeast Asia chairman, pleaded guilty to conspiring to launder money and violate foreign bribery laws.
Goldman spokesman Edward Naylor referred Bloomberg to an earlier comment he provided, which noted the commissions reflected “the risks we assumed at the time, specifically movement in credit spreads tied to the specific bonds, hedging costs and underlying market conditions”.
Discussions with Goldman will start with Malaysia seeking at least US$600 million, Anwar said, with the country expecting to get a higher amount as negotiations continue. The bank made US$593 million for arranging three bond sales that raised US$6.5 billion for 1MDB, which was “exorbitant”, he said.
“We hope this can be resolved pretty fast,” Anwar said. “How can you refuse to cooperate when you understand that billions have been squandered from the public purse?” – bloomberg
FREE MALAYSIA TODAY / BLOOMBERG
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