MALAYSIA is filing a fresh summons to be served to investment bank Goldman Sachs (Singapore) Pte relating to the issuance of US$6.5 billion (RM27 billion) bonds to 1Malaysia Development Bhd (1MDB), the court heard today. 

Four charges have been previously filed against Goldman Sachs entities for allegedly leaving out material facts on the sale of bonds between a subsidiary of 1MDB and Aabar Investment PJS Ltd.

Deputy public prosecutor Zaki Asyraf Zubir requested Kuala Lumpur magistrate Nur Farahain Roslan for case mention be fixed for February 5, which the magistrate granted. 

Zakir said the prosecution will also update the high court on the status of the notice of summons, which is still in process.

He informed the court that the Singaporean authorities rejected Malaysia’s attempt to issue the summons on technical grounds. The fresh summons will correctly include its date of issuance, which was required.  

The charges were filed against Goldman Sachs International and its two entities – Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore) – as well as former banker Tim Leissner, former 1MDB general counsel Loo Ai Swan and Low Taek Jho. The latter two are fugitives.   

The investment bank’s units were charged with the issuance of the US$6.5 billion bonds to fund 1MDB’s independent power plant purchases, Tun Razak Exchange and Bandar Malaysia projects.

The criminal charges against them were transferred from the magistrates’ court to the high court on December 16.

Counsels Hisyam Teh, Prem Ramachandran and Krishna Dallumah appeared for Goldman Sachs (Singapore) today.

The prosecution charged that the banking unit told investors proceeds were for legitimate purposes when it knew otherwise.

The offences were allegedly committed at 1MDB’s premises at Level 8, Menara IMC, No. 8, Jalan Sultan Ismail, Kuala Lumpur, between March 19, 2012 and November 11, 2013.

Goldman Sachs made US$600 million from advising 1MDB on the acquisition of power plants from Genting Bhd and Tanjong Energy Holdings from Ananda Krishnan.

The buyout was financed by bond offerings in 2012 worth US$3.5 billion. Another US$3 billion was raised the following year in Abu Dhabi. 

Attorney-General Tommy said Malaysia is seeking US$2.7 billion in fines and the return of the US$600 million fees. – January 14, 2020.