Sept 30 new mention date for Goldman Sachs' 1MDB bond issues case
The Kuala Lumpur Magistrate's Court has set Sept 30 for mention to allow court papers to be properly served on the Asian arms of international investment bank Goldman Sachs in the case linked to 1MDB's US$6.5 billion of bond issues.
Magistrate Mohamad Fared Abdul Latif set the new mention date as requested by lawyer Hisyam Teh Poh Teik, who acted for London-based Goldman Sachs International and its two other arms, Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore) Pte...
The Kuala Lumpur Magistrate's Court has set Sept 30 for mention to allow court papers to be properly served on the Asian arms of international investment bank Goldman Sachs in the case linked to 1MDB's US$6.5 billion of bond issues.
Magistrate Mohamad Fared Abdul Latif set the new mention date as requested by lawyer Hisyam Teh Poh Teik, who acted for London-based Goldman Sachs International and its two other arms, Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore) Pte.
Hisyam also introduced David Cope to the court today as the representative for all three Goldman Sachs entities.
"Against Goldman Sachs (Asia), the summons was served on it last week and we need time to get further instructions from my client.
"We ask for another date, three months from now, at end-September to (allow me to) seek instructions from my client," he said.
Deputy public prosecutor Aaron Chelliah informed the magistrate that the issue involved in serving the court papers on Goldman Sachs (Asia) was due to the entity having two addresses.
He said it was registered in the United States but operates in Hong Kong.
"Our (prosecution) position is that Goodman Sachs (Asia) has been served (the court papers).
"However, as my learned friend (Hisyam) has reservations on whether the entity (Goldman Sachs (Asia) has been properly served, we have no objection to them seeking a further date.
"My instruction is to seek six weeks (from now for the next mention)," Chelliah said.
However, Hisyam countered that the defence needed more time as there were several other entities and individuals charged with abetment to the primary offender, Goldman Sachs International.
Hisyam was referring to abetment charges filed against Goldman Sachs (Asia) and Goldman Sachs (Singapore), as well as former employees Tim Leissner and Roger Ng Chong Hwa.
Both the prosecution and defence also informed Fared that another case involving Goldman Sachs (Asia), which came up for mention earlier today before Kuala Lumpur magistrate Namirah Hanum Mohamed Albaiki, would be transferred to Fared's court.
Fared then set Sept 30, for the next mention, reminding both parties that by the new date, all of the cases would be brought before his court.
It was previously reported on March 18 that only Goldman Sachs (Singapore) appeared in the mention of the matter at the Magistrates' Court.
The prosecution was reported as saying that it will serve summonses on the other two corporate entities, Goldman Sachs International and Goldman Sachs (Asia), to attend proceedings.
After the proceedings, Chelliah told reporters that the defence team needed time to check back with their client on whether the court papers had been properly served on them.
The DPP said that even though the prosecution is of the position that the documents had been properly served, it is willing to give more time to the defence to seek further instructions from Goldman Sachs.
He also confirmed the attendance of all three corporate entities in the proceedings today via Cope, who brought a letter authorising him to act for all three corporate entities.
On Dec 17, at two Kuala Lumpur magistrate's courts, the three corporate defendants were charged with the commission and abetment of false or misleading statements by all the accused, in order to dishonestly misappropriate US$2.7 billion from the proceeds of three bonds issued by 1MDB subsidiaries, which were arranged and underwritten by Goldman Sachs.
According to a statement issued by Attorney-General Tommy Thomas (photo) on the same date, the three bonds, with a total face value of US$6.5 billion, are:
- US$1.75 billion in bonds issued by 1MDB Energy Limited through an offering circular dated May 18, 2012, with an interest rate of 5.99 percent per annum and redeemable in 2022;
- US$1.75 billion in bonds issued by 1MDB Energy (Langat) Limited through a private placement memorandum dated Oct 17, 2012, with an interest rate of 5.75 percent per annum and redeemable in 2022; and
- US$3 billion in bonds issued by 1MDB Global Investments Limited through an offering circular dated March 16, 2013, with an interest rate of 4.4 percent per annum and redeemable in 2023.
Thomas said the acts by the defendants contravened Section 179 of the Capital Markets and Services Act, 2007.
According to Section 179, it is unlawful for any person, in connection with the subscription, purchase or sale of securities, to use any device, scheme or artifice to defraud; to engage in any act, practice or course of business which operates or would operate as a fraud or deceit against any person; or to make any untrue statement of a material fact, or to omit to state a material fact necessary in order to make the statements, among others.
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