by Ganesh Sahathevan
Arul Kanda Kandasamy, former head of defunctn state investment fund 1MDB,
leaves Kuala Lumpur High Court in Kuala Lumpur, Malaysia,
Wednesday, Dec. 12, 2018.
Malaysia has charged Goldman Sachs and seems to be going it alone without the DOJ
Reports this week about the US Department Of Justice's investigation into Goldman Sachs' part in the 1MDB theft reveal a disturbing lack of cooperation from Malaysian prosecutors who are also pursuing Goldmans.
In the matter of UNITED STATES OF AMERICA against TIM LEISSNER,
the following was revealed:
Throughout 2012 and 2013, the defendant TIM LEISSNER conspired
with others, including Co-Conspirator #1 and Co-Conspirator #2, to obtain and retain
business from lMDB for the benefit of U.S. Financial Institution #1 through the promise and
payment of bribes and kickbacks to government officials in Malaysia and Abu Dhabi using,
in pati, misappropriated and embezzled proceeds from lMDB bond transactions. During
this time, through the course of the scheme, LEISSNER, together with Co-Conspirator #1,
Co-Conspirator #2 and others, paid millions of dollars in bribes and kickbacks to government
officials, and obtained lMDB business for U.S. Financial Institution #1, in patiicular, three
bond offering transactions underwritten by U.S. Financial Institution #1 for lMDB referred
to as "Project Magnolia," "Project Maximus" and "Project Catalyze."
Given the finding that Leissner and his co-conspirators paid millions of dollars in bribes and kickbacks to (Malaysian) government officials, why are not Malaysian prosecutors working together with their DOJ counterparts? Given the Malaysian investigations into former PM Najib Razak over the past five years and especially in the past year and a half since the change in government much has been learnt which would have helped the DOJ case.
Additionally, given the extensive DOJ investigations the Malaysian evidence is likely to have been strengthened.
This reticence by Malaysian prosecutors to work with the DOJ has been evident throughout the SRC trial where none of the very extensive DOJ data was ever mentioned.
Meanwhile, it does appear as if the rest of the world led by the DOJ is pursuing the 1MDB matter with greater vigour and skill than Malaysia.
This week Bloomberg reported: