A former Goldman Sachs banker, Tim Leissner, has testified in a New York court that bribes and kickbacks were essential to securing lucrative business with Malaysia's 1MDB sovereign wealth fund. Leissner, once celebrated for bringing in the deals, is cooperating with prosecutors in the trial of his former colleague Roger Ng.
Prosecutors allege that Leissner and Ng helped divert billions from 1MDB, with $4.5bn of the $6.5bn raised through bond deals being siphoned off for bribes to Malaysian politicians and others. The funds were reportedly spent on art, jewellery, and property. Leissner admitted in court, 'My greed and ambition took over,' and acknowledged that the fallout had destroyed his life.
Ng, who worked for Goldman from 2005 to 2014, has denied wrongdoing. His defence lawyer, Marc Agnifilo, claims Ng is a 'fall guy' and has questioned Leissner's credibility. Leissner pleaded guilty to conspiracy to launder money and violate anti-bribery laws in 2018 and is awaiting sentencing.
Goldman Sachs admitted in 2020 that its Malaysia unit had paid bribes, agreeing to pay fines in the US, Malaysia, and elsewhere. The bank also reached a $3.9bn settlement with the Malaysian government and paid nearly $3bn to authorities in four countries to end investigations into its 1MDB work.
Malaysia's former Prime Minister Najib Razak was sentenced to 12 years in jail in 2020 for his role in the scandal, found guilty of abuse of power, money laundering, and breach of trust.
