Goldman chief apologises to people of Malaysia

David Solomon, Goldman Sachs CEO has apologised to the “people of Malaysia” for the role one of his top bankers played in the multi-billion-dollar embezzlement scandal at the country’s national investment fund.

Mr Solomon made it clear that Goldman had done nothing wrong in its dealing with 1MDB, which US and Malaysian authorities allege was pillaged for at least $4.5bn, but acknowledged that Tim Leissner a former senior partner in Goldman’s Asia operations had pleaded guilty to participating in the fraud.

“It’s very clear that people of Malaysia were defrauded by many individuals, including the highest members of the Malaysian Government”.  Goldman is being sued for billions and criminally prosecuted in Malaysia for its role in helping 1MDB raise $6.5bn in debt, much  of which was allegedly stolen or whisked away or paid in bribes. The case is also being probed by the US justice Department.

Goldman’s shares drove up nearly 9 per cent after strong set of fourth-quarter results which included a $516m provision for litigation and regulatory matters, which is believed to be largely related to 1MDB.

Mr Solomon went on to say Goldman had been deceived by Mr Leissner and Malaysian officials and had no knowledge that Jho Low, the scheme’s alleged mastermind , was involved as in intermediary.