Singapore authorities are probing the dealings of Goldman Sachs with the Malaysian state investment fund commonly known as 1MDB, according to a media report. The bank raised some $6 billion for the fund, meant for development projects.
Investigators at Singapore’s Commercial Affairs Department have spoken to former and current executives at Goldman Sachs about their work with 1MDB, «Bloomberg» reported today, citing sources who requested to remain anonymous. The interviews also touched upon their relationship with Jho Low, the man accused of having helped himself to funds intended for development purposes.
Handsome Return
The New York-based bank raised almost $6 billion for the Malaysian fund in 2012 and 2013. It received as much as $593 million in fees and commissions for the business, according to the report by «Bloomberg». The sum was part of the interviews conducted by Singapore investigators. Goldman Sachs and the current and former employees of the bank have not been charged with any wrongdoing.
Goldman Sachs has previously stated that the fees were in keeping with the underwriting risk and market conditions. The bonds were arranged by the London-based Goldman Sachs International unit. Goldman Sachs didn’t comment on the «Bloomberg» report.
Professional Bans Issued
The conduct of one former Goldman Sachs executive has already been found wanting in the probes that followed the emergence of the scandal. Tim Leissner, the former Southeast Asia chairman of the U.S. bank and lead banker to the fund has been handed a professional ban in Singapore and the U.S.
The case has prompted investigations in Singapore, the U.S. and Switzerland and led to the closure of Switzerland’s BSI private bank in Singapore. The U.S. judiciary claims that $1.4 billion of the bond issue ended up on a bank account of BSI in Switzerland.
