KUALA LUMPUR (March 18): The Securities Commission Malaysia (SC) highlighted the completion of its investigation into the Goldman Sachs Group Inc (GSG) entities as one of its key enforcement achievements last year.

In its 2020 annual report, the regulator said it completed its investigation into Goldman Sachs International, Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore) Pte for engaging in a scheme to defraud the Malaysian Government and 1Malaysia Development Bhd (1MDB).

The scheme involved the issuance of the US$1.75 billion 5.99% guaranteed notes due in 2022 issued by 1MDB Energy Ltd, the US$1.75 billion 5.75% guaranteed notes due in 2022 issued by 1MDB Energy (Langat) Ltd, and the US$3 billion 4.4% notes due in 2023 issued by 1MDB Global Investments Ltd.

The SC said the investigation was made following former Goldman Sachs banker Tim Leissner’s guilty plea on Aug 28, 2018, for conspiring to commit money laundering and conspiring to violate the US Foreign Corrupt Practices Act by paying bribes to various officials and circumventing internal accounting controls of GSG’s entities.

The regulator also queried Goldman Sachs Malaysia Sdn Bhd as Leissner was a director on its board during the material time.

“As the SC’s investigation forms part of the government of Malaysia’s settlement negotiation with GSG, the SC’s team provided input and support to the Attorney-General throughout the negotiation leading to US$3.9 billion settlement with GSG.

“The settlement agreement comprised among others, GSG making a cash payment of US$2.5 billion and providing an asset recovery guarantee of US$1.4 billion to the Government of Malaysia,” it said.

Besides the GSG investigation, the SC also highlighted the conviction of Gan Boon Aun, the former CEO and executive director of Transmile Group Bhd, for furnishing a misleading statement to Bursa Malaysia in relation to the company’s revenue for the financial year ended Dec 31, 2006.

Gan was jailed for a day and fined RM2.5 million in default 18 months' jail.

Also noted was the affirmed conviction of Datuk Dr Mohd Adam Che Harun, the former executive chairman of Megan Media Holdings Bhd, also for furnishing false information to the bourse, in relation to revenue for the financial period ended Jan 31, 2007.

The Court of Appeal reinstated his 18 months’ jail term, which was imposed by the Sessions Court, and maintained the RM300,000 fine.