Show-cause letter issued to Goldman Sachs

Goldman Sachs may have constantly denied any wrong-doing in its involvement in 1MDB scandal, but Malaysian Security Commission have issued a show-cause letter to the US bank, demanding reasons to not be subject to disciplinary action.

Since former Prime Minister Najib Razak was charged with corruption, abuse of power and criminal breach of trust, two former Goldman bankers Tim Leissner and Roger Ng have also been charged with corruption and money laundering.

Following the criminal charges, Goldman Sachs CEO David Solomon has come forward to apologise to the Malaysians Leissner and Ng’s role in the corruption scandal.

Goldman is still being investigated both by Malaysian authorities and the US Department of Justice (DOJ) on its role as underwriter and arranger of three bonds deal which raised US$ 6.5 billion (RM 26.5 billion) for 1MDB, with US$600 million went to the bank itself as earned fee.

As of today (March 15), response from Goldman has not been reported.

Kepong MP Lim Lip Eng in Parliament yesterday questioned whether the government intends to take any legal actions against Goldman or any other parties to recover the 1MDB lost funds.

Minister in the Prime Minister’s Department Liew Vui Keong sent a written reply that the government has no intention in pursuing legal actions against Goldman so that it could put absolute attention on the local proceedings involving Leissner and Ng.

Nevertheless, if Goldman Sachs has not responded to the show-cause letter, how has the government decided not to proceed the legal action against the giant investment company?