GOLDMAN Sachs yesterday accused the previous Barisan Nasional government of lying after Malaysia filed charges against its subsidiaries and two former employees over the 1MDB scandal, reports Reuters today.

Attorney-General Tommy Thomas said yesterday charges have been filed against Goldman Sachs bankers Tim Leissner and Roger Ng Chong Hwa, as well as former 1Malaysia Development Bhd legal adviser Jasmine Loo Ai Swan and wanted businessman Low Taek Jho, or Jho Low.

Their charges involve conspiracy to make false or confusing statements and bribing public officials to secure Goldman Sachs’ participation in the issuance of three bonds so as to embezzle US$2.7 billion (RM12 billion) from the proceeds.

The three bonds, arranged and underwritten by Goldman Sachs, with a total face value of US$6.5 billion were issued by 1MDB Energy Limited (US$1.75 billion) at a rate of 5.99% per annum, 1MDB Energy (Langat) Limited (US$1.75 billion) at 5.75%, and 1MDB Global Investments Limited (US$3 billion) at 4.4%.

“Certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of proceeds from these transactions,” Goldman Sachs said in a statement yesterday.

“1MDB, whose CEO and board reported directly to the prime minister at the time, also provided written assurances to Goldman Sachs for each transaction that no intermediaries were involved,” it said.

1MDB is the brainchild of Prime Minister Najib Razak, who set up the fund in 2009.

Najib is now 39 facing counts of corruption and money-laundering in relation to 1MDB.

Goldman Sachs said yesterday it was not afforded the chance to be heard before the filing of the charges and will contest the allegations.

The investment bank’s shares were down 2.8% at US$167.92 on the New York Stock Exchange yesterday.

Analysts told Reuters Goldman Sachs is likely to set aside as much as US$1 billion to settle the 1MDB issue.

Goldman Sachs stock has fallen nearly 26% since November 1. – December 18, 2018.