KUALA LUMPUR: The prosecution has today withdrawn the 1Malaysia Development Bhd (1MDB) case against UK-based Goldman Sachs International Ltd and its Asian entities, Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore).
The three entities were facing charges relating to the sale of 1MDB bonds amounting to RM27.2 billion (USD$6.5 billion).
High Court judge Mohamed Zaini Mazlan allowed the application for the charges to be withdrawn after deputy public prosecutor Datuk Masri Mohd Daud told the court that the prosecution did not wish to continue with the case.
"There is a new development today. The prosecution does not wish to continue with the action against the three companies. We would like to withdraw the case," Masri said.
Lawyer Hisyam Teh Poh Teik, who represented the three entities, then asked for the court to issue an order for an acquittal and discharge of his clients.
Masri confirmed that the prosecution had no objections to this.
The court subsequently acquitted and discharged the three Goldman Sachs entities from the charges.
On Feb 24, Goldman Sachs, through its representative, Ng Keng Leong, pleaded not guilty to the charges.
In Dec 2018, Malaysia filed four charges against the three entities for allegedly leaving out material facts on the sales of bonds between a subsidiary of 1MDB and Aabar Investment PJS Ltd (Aabar).
The offences were allegedly committed at 1MDB, Level 8, Menara IMC, No. 8, Jalan Sultan Ismail, here, between March 19, 2012, and Nov 11, 2013.
The company was charged under Section 179 (c) of the Capital Markets and Services Act 2007 which provides for imprisonment for a term not exceeding 10 years and a fine not less than RM1 million, upon conviction.
The United States Department of Justice estimated that about US$4.5 billion was misappropriated from 1MDB between 2009 and 2014.
It was reported that Goldman Sachs had agreed to a total settlement of US$3.9 billion (RM16.6 billion) to resolve outstanding charges and claims related to the three bond transactions that the company had structured and arranged for 1MDB.
Meanwhile, the court set Sept 10 for case management of the case against former Goldman Sachs banker Roger Ng Chong Hwa who was charged with four counts of abetting Goldman Sachs pertaining to the sale of guaranteed notes and bonds belonging to a subsidiary of 1MDB totalling US$6.5 billion.
Masri said the prosecution did not intend to withdraw the case against Ng.
Ng is currently in the US for a trial over 1MDB-related offences.
He was represented by lawyer Datuk Tan Hock Chuan.