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Straits Times
23-05-2025
- Business
- Straits Times
Goldman accuses 1MDB banker of ‘serial lies' ahead of sentencing
Goldman Sachs said that Tim Leissner, the bank's former South-east Asia chairman, has never taken responsibility for his actions in the multibillion-dollar fraud. PHOTO: REUTERS NEW YORK – Goldman Sachs Group Inc said the banker at the heart of a scandal linked to Malaysia's 1MDB investment fund engaged in 'serial lies' and deception about the fraud, days before he is scheduled to be sentenced. In a letter to a US judge, Goldman said that Tim Leissner, the bank's former South-east Asia chairman, has never taken responsibility for his actions in the multibillion-dollar fraud that brought down the Malaysian government. The letter comes after the US government asked for leniency when Leissner is sentenced next week. The bank's general counsel, Ms Kathryn Ruemmler, wrote that Leissner's attempt to blame the financial industry for his crimes 'denigrates the countless law-abiding people who work in it and draws focus for the true motivation for Mr Leissner's crimes: greed.' Leissner, who pleaded guilty in 2018 to his role in looting billions from 1MDB, became the US government's key witness. Prosecutors say his testimony was central to the conviction of one of his Goldman colleagues and a US$2.9 billion (S$3.75 billion) fine against the bank, the largest ever in a foreign bribery case. 'Leissner spent years using offshore shell companies, personal email accounts and personal devices to engage in crime, evade detection and put Goldman Sachs at risk in the process,' Ms Ruemmler wrote in the letter, filed in Brooklyn, New York, Thursday. Leissner, 53, faces as much as 25 years in prison after he became the face of the global financial scandal that led to investigations in six countries. As part of the fraud, he admitted that he pocketed US$73.4 million from 1MDB and another US$80 million from Jho Low, the fugitive financier who was the architect of the fraud. Mr Henry Mazurek, Leissner's lawyer, said that 'the chutzpah of Goldman Sachs's letter to the court today is astounding.' 'Mr Leissner spent the last several years cooperating with the Department of Justice to expose the corporate culture and institutional greed which fuelled the behaviour that corrupted the 1MDB project,' Mr Mazurek said in a statement. Goldman and a spokesman for US prosecutors declined to comment. Prosecutors said in their own court filing that Leissner continues to help with unidentified US investigations into 'other crimes,' in addition to the 1MDB case. 'Leissner provided information concerning the role of powerful individuals in a global scheme to bribe government officials in two countries and divert billions of dollars into bank accounts around the world,' prosecutors said in a filing earlier in May. But the bank countered that 'from Goldman's perspective, Mr Leissner's efforts in this regard are deserving of sanction, not praise.' In 2020, Goldman, which made US$600 million from the 1MDB transactions, entered into a deferred prosecution agreement with the US and its Malaysian unit pleaded guilty to violating US anti-bribery laws. The New York-based investment bank said in the letter on May 22 that it didn't 'adequately address red flags and scrutinise the representations of certain members of the deal team.' In his own filing, Leissner said that he should be spared any time in prison. He said that he provided crucial evidence against former Malaysian Prime Minister Najib Razak, Abu Dhabi sheiks and Goldman and gave the US a roadmap to the complex money-laundering scheme at 1MDB. 'I know how terrible my crime was,' Leissner said in a letter to the judge. 'In the process of telling the government and the world about 1MDB, I have had to publicly face the fact that I helped steal billions of dollars not just from individuals, but from an entire nation.' When he pleaded guilty in August, 2018, Leissner blamed Goldman's 'culture' as playing a role in the fraud when he described his crimes. 'During the course of the conspiracy, I conspired with other employees and agents of Goldman Sachs very much in line of its culture of Goldman Sachs to conceal facts from certain compliance and legal employees of Goldman Sachs, including Jho Low,' he said in court. Leissner could still face legal actions in Malaysia. The country's Home Minister, Saifuddin Nasution Ismail, said earlier in May that Malaysia has submitted an extradition request for Leissner's arrest with the US Justice Department. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
16-05-2025
- Business
- Business Times
Malaysia committed to 2025 petrol subsidy cut but no fixed date
[KUALA LUMPUR] Malaysia is committed to reducing petrol subsidies in the second half of the year and is refining its plan as US tariffs darken the economic outlook. The government 'will continue to assess inputs and feedback in refining details' of its fuel subsidy revamp as it actively engages with a wide range of stakeholders, a spokesperson at the Ministry of Finance said. Prime Minister Anwar Ibrahim in October said that the government would cut subsidies on the most popular petrol in mid-2025, a move that's expected to save the government RM8 billion (S$2.4 billion) a year. Policymakers are planning a two-tier price system for RON95 petrol. Anwar said then that only the wealthiest 15 per cent would pay the market rate for it, while the rest will enjoy the current subsidised price. 'The government remains committed to implementing the RON95 subsidy rationalisation in the second half of 2025, and will be sharing further details in due course,' the spokesperson said. Anwar, who is at the midpoint of his five-year term, faces a juggling act. Lawmakers have urged the government to postpone the move and other adjustments to fiscal policy that they fear would damp business confidence and increase costs for consumers. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up But cutting the subsidies are key to meeting government pledges to narrow the country's fiscal deficit. A reduction in diesel subsidies in June last year added to the government's coffers – and was followed by the ruling coalition's loss in a by-election. To assuage Malaysians' concerns, Anwar – who is also finance minister – said in March that a government study showed the planned subsidy cut will not affect 80 to 90 per cent of the population. A recent decline in global oil prices has made it easier for policymakers to push ahead with the politically sensitive move as disruptions in global trade from US President Donald Trump's tariffs dim the outlook for Malaysia's economy. Officials are seeking to negotiate a deal with Washington within the 90-day pause on higher tariffs mandated by Trump, who has in the meantime imposed a 10 per cent levy on goods from Malaysia and many other trading partners. Malaysia has already delayed a planned expansion of its sales and service tax that was due on May 1, providing a temporary reprieve for manufacturers. Still, electricity prices are scheduled to rise in July. The government is confident of achieving its target to narrow the budget gap to 3.8 per cent of gross domestic product this year from 4.1 per cent in 2024, Malaysia Second Finance Minister Amir Hamzah Azizan said in April. Policymakers are seeking to ensure that the implementation of the petrol subsidy cut is 'as smooth as possible for Malaysians and effective in meeting its objectives', the Ministry of Finance spokesperson said. 'The overarching objective remains clear – to ensure that most Malaysians continue to enjoy RON95 at subsidised price while addressing the leakage of subsidies to foreigners, businesses and the highest income earners,' the spokesperson said. BLOOMBERG
