Trial over Goldman Sachs’ 1MDB bond sale to start in November

KUALA LUMPUR (Feb 24): The government’s case against Goldman Sachs regarding the sale of the guaranteed notes and bonds belonging to 1Malaysia Development Bhd (1MDB) is set to start in November.

During case management here before High Court judge Mohamed Zaini Mazlan, parties to the case agreed to set the start of the trial on Nov 9-13.

It will then continue the following year on Feb 15-26, March 8-18 and subsequently April 5-15.

The government was represented by deputy public prosecutor Zaki Asyraf Zubir, while Goldman Sachs was represented by Hisyam Teh Poh Teik.

Earlier, an authorised company representative of Goldman Sachs Singapore, Ng Keng Leong, pleaded not guilty and claimed trial to all four charges each for three cases each against the company.

Justice Mohamed Zaini proposed to have all three cases jointly heard, to which both the prosecution and the defence team agreed. About 30 witnesses are expected to testify for the prosecution.

Meanwhile, the next case management to hear on the submission of documents will be on May 18 this year.

In December 2018, Malaysia filed four charges against Goldman Sachs for allegedly leaving out material facts on the sale of bonds between a subsidiary of 1MDB and Aabar Investment PJS Ltd.

The offences were allegedly committed at 1MDB’s premises at Menara IMC in Jalan Sultan Ismail here between March 19, 2012, and Nov 11, 2013.

The company was charged under Section 179(c) of the Capital Markets and Services Act 2007, which carries a penalty of imprisonment for a term not exceeding 10 years and a fine of not less than RM1 million, upon conviction.

Former Goldman Sachs banker Roger Ng Chong Hwa had also claimed trial to four counts of abetting the company, in reference to the sale of the same bonds by omitting material facts and making false statements.

The US Department of Justice has estimated that about US$4.5 billion was misappropriated from 1MDB between 2009 and 2014.

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