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Goldman Sachs has been accused of "inexcusable" behavior as part of its work for the Malaysian 1MDB investment fund by country leader Anwar Ibrahim, who has stepped up pressure on the US bank for it to pay back hundreds of millions of fees earned on controversial transactions. .
"They must understand that being complicit in excesses and that crime is inexcusable," Anwar told Bloomberg Television on the sidelines of the New Economy Forum in Singapore.
While Anwar is expected to succeed Mahathir Mohamad as prime minister over the next two years, his comments indicate that Malaysia could remain at odds with Goldman for years, following the scandal that led to billions of dollars have been hijacked in one of the biggest frauds in the country. l & # 39; history.
This could make it difficult for the bank to do business in one of the largest countries in the region at a time when its business in Southeast Asia is already contracting.
Anwar's remarks come just days after the US Justice Department indicted two former Goldman bankers, accusing them of working with Malaysian financier Low Taek Jho, also known as Jho Low, to whitewash money. billion dollars diverted from 1MDB, the state-backed fund. of which an alleged amount of $ 4.5 billion has disappeared.
Mr. Low maintains his innocence, while former Goldman partner Tim Leissner pleaded guilty and Roger Ng, a former Goldman CEO in Southeast Asia, was arrested in Malaysia on charges of similar charges of money laundering and bribery. The bank also put a former co-head of investment banking in Asia on leave, examining the details of the charges.
Malaysia's ruling coalition, which overthrew 1MDB founder Najib Razak in the May elections, has long called on Goldman to return the $ 600 million the country had paid for three bond issues. – an official from the Ministry of Finance has described as "extortion".
"We have to follow the planned process. If they are willing to negotiate, then they must come back [the fees]Mr. Anwar told Bloomberg TV. "We must seize every penny that has been removed from the country by the leaders or accomplices of this action."
Malaysia's Finance Minister Lim Guan Eng told the Financial Times last month that the country was seeking to recover more than $ 600 million, without specifying an amount.
At a meeting in Singapore, Anwar said Malaysia must now send a strong message on the need to end bad governance and change the way it deals with international financial institutions, which was interpreted as one of the many blows to Goldman during the session.
He also told Bloomberg TV that he was not planning to meet with Goldman's representatives at the conference while the 1MDB global survey was underway. The bank did not immediately respond to requests for comment.
David Solomon, Goldman's new CEO, and his former chairman Gary Cohn, who was among the more than 30 bank executives who reviewed the Malaysian debt operations, are both attending the Bloomberg forum.
Mr. Cohn declined to comment on the impact the 1MDB saga could have on the region's bank. Mr. Solomon could not be reached for comment. Edward Naylor, spokesman for Goldman Sachs, said: "The company continues to cooperate with all authorities investigating this case."
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Wall Street Bank helped 1MDB sell about $ 6.5 billion worth of bonds between 2012 and 2013, two years before the Malaysian police raided public investment fund offices to investigate allegations of fraud gigantic.
The senior finance ministry official said it was unlikely that Malaysia would ban the bank's activities, adding that this was unnecessary "given the damage to the reputation they suffered for them- same. "
The allegedly diverted money of 1MDB was used to buy luxury real estate in New York, expensive art works and even to finance the Hollywood movie. the wolf of Wall Street, according to the US Department of Justice.
In December 2017, US Attorney General Jeff Sessions called the 1MDB scandal "kleptocracy at its worst". The Ministry of Justice has already initiated a series of civil suits to recover funds allegedly stolen from the Malaysian fund.
Additional report by Don Weinland in Hong Kong
