Jakarta Post

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post
The Jakarta Post
Video Weather icon 26°C
DKI Jakarta, Indonesia
26°C Light Rain

Rain until tomorrow morning, starting again tomorrow afternoon.

  • Thu

    26℃ - 31℃

  • Fri

    26℃ - 32℃

  • Sat

    27℃ - 32℃

  • Sun

    26℃ - 30℃

1MDB scandal back in the spotlight

  • News Desk

    ANN

Bangkok | Fri, November 3, 2017 | 04:15 pm
1MDB scandal back in the spotlight Malaysian Prime Minister Najib Razak (The Star/File)

Goldman Sachs is facing more scrutiny over its role in the 2015 1MDB scandal, amid ongoing accusations that Malaysian Prime Minister Najib Razak looted more than 2.67 billion ringgit (nearly US$700 million) from the state investment fund. Both 1MDB and Najib, who formerly chaired its advisory board, have consistently denied any wrongdoing.

With probes into 1MDB progressing in Switzerland, the UK, the US and elsewhere, Singapore investigators are interviewing current and former Goldman Sachs executives who worked on bond offerings from 1MDB. Bloomberg reports that the criminal probe into 1MDB fund flows is also scrutinising Goldman Sachs’ links with Malaysian financier Low Taek Jho, who the US says controlled a plot to siphon billions of dollars from the bond proceeds. Neither the bank nor its employees have been publicly accused of criminal offences in relation to the fund. 

New York-based Goldman Sachs is under the spotlight for raising almost US$6 billion for 1MDB in 2012 and 2013. Meant to fund development projects, most of the money was instead diverted by high-level 1MDB officials and their associates, US prosecutors allege.

On Thursday, Singapore sought to further cleanse its financial system of the scandal by banning two more individuals connected with 1MDB dealings.

The city-state’s Monetary Authority slapped six-month bans on Kelvin Ang, a former trader, and former research analyst Lee Chee Waiy, taking to six the number of people the regulator has barred over 1MDB-related matters, Bloomberg reports.

The city-state has also shut the local units of two Swiss banks, seized hundreds of millions in assets and convicted five people over 1MDB-related offences.

In March, MAS banned former Goldman Sachs Group Inc banker Tim Leissner from its securities industry for 10 years after saying he issued an unauthorized letter and made false statements on behalf of the US bank.

Malaysian police on Thursday reopened their investigation into 1MDB on instructions from the attorney-general. The police declined to give details of the probe.

In 2015, then-attorney-general Abdul Gani Patail was removed from his post while heading an investigation into claims of misappropriations of 1MDB funds allegedly involving Najib.

The embattled prime minister has so far weathered the storm over 1MDB and is now gearing up for an election next year. In a bid to woo voters hit by rising living costs, he announced an expansionary 2018 budget last Friday, with a 7.5 percent rise in public spending.  

Topics :

NEWS PULSE

Join the discussions