KUALA LUMPUR: Malaysian prosecutors on Tuesday sought a court change for Goldman Sachs’s criminal trial over its role in the alleged multibillion-dollar ransacking of state investment fund 1MDB.
Hisyam Teh Poh Teik, a lawyer for Goldman, said that prosecutors informed the magistrate court now hearing the case that they had applied to transfer it to the high court. He said the lower court scheduled an update on the transfer to be heard Dec. 16.
Prosecutors did not give any reasons for the transfer but a move to a higher court usually reflects the seriousness of the case.
Malaysian and US prosecutors allege bond sales organized by Goldman Sachs for 1MDB provided one of the means for associates of former Malaysian leader Najib Razak to steal billions from a fund that was ostensibly set up to accelerate Malaysia’s economic development.
Three Goldman subsidiaries and two former executives were charged in December for alleged breaches of securities laws including making false, misleading statements to investors. Another 17 more current and former directors at Goldman were charged in August with allegedly conniving to commit the massive fraud.
FASTFACT
Former Malaysian leader Najib Razak set up 1MDB when he took office in 2009.
Hisyam declined to comment on the allegations. Goldman has pleaded not guilty to the charges.
Najib set up 1MDB when he took office in 2009, but it accumulated billions in debts and US investigators allege at least $4.5 billion was stolen from the fund and laundered by Najib’s associates.
Public anger over the alleged corruption contributed to the election defeat of Najib’s long-ruling coalition in May 2018. Najib is now on trial for multiple charges of corruption over the 1MDB case and was in the same court building Tuesday for his second trial. Najib denies the charges. His wife and stepson also have been charged over the scandal.
