Malaysia on Friday dropped criminal charges against Goldman Sachs Group and two its Asian units in relation to the criminal case involving the billion-dollar embezzlement from the 1Malaysia Development Berhad (1MDB) state investment fund, media reported
MOSCOW (Pakistan Point News / Sputnik - 04th September, 2020) Malaysia on Friday dropped criminal charges against Goldman Sachs Group and two its Asian units in relation to the criminal case involving the billion-dollar embezzlement from the 1Malaysia Development Berhad (1MDB) state investment fund, media reported.
Goldman Sachs Group was accused of selling bonds of 1MDB fund created by the Malaysian government in 2009 to promote the country's economic growth through direct foreign investment and global partnerships. The bank raised billions of dollars for the Malaysian fund, however a number of officials, including the ex-Malaysian prime minister Najib Razak and two senior Goldman bankers, have since been suspected of embezzling around a total of $4.5 billion from the fund.
According to The Wall Street Journal, a Malaysian court discharged and acquitted subsidiaries of the bank.
The news follows July's out-of-court settlement agreement between Goldman Sachs and the Malaysian Finance Ministry stipulating that the bank will pay $2.5 billion to the government of Malaysia and guarantee the recovery of $1.4 billion in the assets stolen from the fund.
Despite the withdrawal of charges against the company, the Malaysian prosecutor's office does not plan to withdraw charges against former Goldman Sachs banker Roger Ng, who is in the US to face 1MDB-related charges.
The 1MDB embezzlement case is being investigated simultaneously in Malaysia, Singapore, the US, Switzerland and several other countries. The 1MDB embezzlement scandal was one of the main reasons for the failure of the former prime minister's party the United Malays National Organization in the 2018 general elections.
