MONEY MASTER

Goldman Sachs Group Inc is being accused in a lawsuit of selling out a client to curry favor with Prime Minister Najib Razak at a time when the bank has already been under scrutiny by regulators over its fundraising for the embattled 1Malaysia Development Bhd (1MDB). Goldman and former managing director Tim Leissner allegedly betrayed their duties as financial adviser of EON Capital Bhd, which was taken over by Hong Leong Bank Bhd. for $1.7 billion in May 2011. Goldman used EON’s confidential information to help the bank buy EON on the cheap knowing that Najib’s brother served as a board member and another brother chaired the investment firm advising the bank, Primus Pacific Partners 1 LP said in the complaint. (Source: Bloomberg) Spokesman for Goldman said lawsuit as "misguided" Primus Pacific, EON’s biggest shareholder after buying a stake of more than 20 percent in 2008, unsuccessfully sued twice to block the sale, arguing that Hong Leong’s takeover price ...

1Malaysia Development Bhd (1MDB) has made a media statement, saying that  its audited financial statements for 2013 and 2014 shouldn’t be relied on after U.S. prosecutors said more than $3.5 billion was misappropriated from the fund during a period that included those years. "Whilst the Board  remains confident that no wrongdoing has been committed by 1MDB and that the past audited financial statements continue to show a true and fair view of the company’s affairs at the relevant points in time, the Board has decided that, as a precautionary measure, the 2013 and 2014 audited financial statements of 1MDB should no longer be relied on by any party, pending final and conclusive determination by a court of law of certain alleged facts, as described in the Complaint." 1MDB also said its auditor Deloitte LLP is resigning and the company is seeking a replacement, according to an e-mailed statement on Tuesday.  It didn’t give a reason for the departure but said that D...

Switzerland's top prosecutor said $4 billion may have been misappropriated from state-owned companies in Malaysia. $4 billion may have been misappropriated from state-owned companies in Malaysia “We are very concerned,” Swiss Attorney General Michael Lauber told The Wall Street Journal on Friday. “ We have found evidence of suspicious money transfers linked to 1MDB going through Swiss financial institutions, and we believe that it is very important that it is shared with the Malaysian authorities.” The investigation revealed indications that funds have been misappropriated and said it was looking into four cases of potential criminal conduct. It said some of the funds had been transferred to Swiss accounts held by former Malaysian public officials and current and former officials from the United Arab Emirates. The comments represent the most detailed allegations yet of wrongdoing around 1MDB. The fund, set up by Malaysian Prime Minister Najib Razak in 2009 to help str...