Abu Dhabi’s IPIC drops lawsuit against Goldman Sachs over 1MDB scandal



AbuDhabi’s Petroleum Investment Co (IPIC) said on Wednesday that it was dropping a lawsuit against Group Inc to recover losses suffered from the US investment bank’s dealings with Malaysian state fund 1MDB.

The lawsuit had alleged that Goldman conspired with unidentified people from Malaysia to bribe its two former executives – former IPIC managing director Khadem Abdulla al-Qubaisi and Mohamed Ahmed Badawy al-Husseiny, former CEO of Aabar, an IPIC unit – to further their business at its expense.


state fund Mubadala Investment Co, which controls IPIC, had suspended business dealings with Goldman after the lawsuit.



“Following collaborative discussions, the Petroleum Investment Company is dismissing its lawsuit against Goldman Sachs, related to issues regarding 1MDB,” IPIC said in an e-mailed statement on Wednesday.


Goldman did not immediately respond to a Reuters request for comment.


The scandal dates back to the government of former Malaysian Prime Minister Najib Razak, which set up the 1MDB fund in 2009. The Justice Department estimated $4.5 billion was misappropriated by high-level fund officials and their associates between 2009 and 2014.Malaysia in September dropped criminal charges against three Goldman units after the bank agreed to pay $3.9 billion to settle the probe.


The investment bank has been investigated by regulators in at least 14 countries, including the United States, Malaysia and Singapore, for what its leadership did and did not know about the transactions.


Goldman is expected to settle with US authorities later this week, resolving a probe into the bank’s role in underwriting three bond offerings in 2012 and 2013 that raised $6.5 billion for Malaysia’s government.


According to the US Justice Department, Goldman earned $600 million in fees for its work with 1MDB.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Leave a Comment

© 2020 Daily Dose of Market and Beyond News