Goldman Sachs Boss Issues Apology To Malaysian People Amidst 1MDB Scandal


David Solomon, the new chief executive of Goldman Sachs, has issued an apology to the people of Malaysia for the role of Tim Leissner, a former banker, in the 1MDB sovereign wealth fund scam.

Last year, prosecutors in the United States of America charged two former bankers with the theft of billions of dollars from IMDB and Leissner pleaded guilty to a conspiracy to launder money and agreed to pay $43.7 million (£34 million).

Last December, authorities in Malaysia filed criminal charges against the investment bank in connection with the corruption and money laundering investigation.

Tim Leissner and Roger Ng, both former Goldman bankers; Jasmine Loo, a former employee of the 1MDB; and the fugitive financier known as Jho Low were also included in the said charges.

After the strong fourth quarter results of the bank, Solomon apologised to the Malaysian people, however, he insisted that the bank conducted due diligence before every transaction.

During a conference call with some analysts, Solomon stated: “When control functions in the firm asked if each transaction whether intermediaries were involved, they were told no.”

He added: “Leissner himself said no intermediaries were involved in the transaction.”

He said that the bank had helped in raising money for the fund, however, it had been deceived regarding the details of the deals.

The investigation is examining three bond offerings that were raised by Goldman Sachs and others for 1MDB to a total amounting to $6.5 billion, which are now under investigation in at least six countries.

Goldman Sachs said that the charges were “misdirected.” It added that the bank is cooperating with all of the investigations. It has since denied all wrongdoing.

The justice department of the United States has said that $4.5 billion was misappropriated by high-level officials of the said fund and their associates between the period of 2009 and 2014.