Malaysia Summons two Goldman Sachs units ahead of 1MDB case

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Malaysia Summons two Goldman Sachs units ahead of 1MDB case

On Monday, the 18th of March 2019, Malaysian prosecutors had said that they were going to issue summonses for Goldman Sachs unit in Hong Kong and London, asking both US investment bank units to respond by June 2019 for the criminal lawsuit filed against them last year.

After a new Malaysian government had charged three Goldman Sachs Units last year for misleading investors by making false testimony and failing to disclose key facts related to $6.5 billion bonds for Malaysian state fund, 1MDB (1Malaysia Development Berhad).

On Monday (March 18th), while the Summonses were being prepared, only the Singapore unit of Goldman Sachs was present at a pre-trial hearing in Kuala Lumpur as a respondent. Following the announcement of the summonses, prosecutor Aaron Paul Chelliah said to the press, “Fresh summonses will be served on the United Kingdom and Hong Kong offices of Goldman Sachs ahead of the next court hearing on June 24”.

Never the less, the 1MDB scandal had played a pivotal part on 2018’s electoral defeat of Najib Razak that ended his decade-long reign and a new government led by Mahathir Mohammad had reopened the 1MDB related investigations promptly after taking the office.

Besides, Najib has been facing multiple charges mostly linked to 1MDB corruptions. Both Najib Razak and Goldman Sachs denied any kind of wrongdoing.