Mubadala Investment Company, an Abu Dhabi sovereign wealth fund, has stopped new business dealings with Goldman Sachs over its embroilment in the 1MDB Malaysian state fund scandal, reported Reuters.
The move comes shortly after Mubadala unit International Petroleum Investment Company (IPIC) filed a lawsuit against the bank.
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The company alleged that the bank played a central role in the 1MDB scandal, causing significant losses to the firm.
The bank was accused of bribing ex-IPIC employee and a former employee of its subsidiary Aabar Investments.
The bank is set to contest the charges.
Mubadala spokesman Brian Lott was quoted as saying by the report: “We have suspended any activities with Goldman Sachs pending outcome of the litigation.
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By GlobalData“The only exceptions are engagements signed prior to the litigation, which will continue as per contractual terms,” Lott noted.
Currently, Mubadala has oversight of more than $225bn in assets.
The company has interest in Spanish oil and gas firm Cepsa and Austrian firm OMV, among others.
According to Reuters, Goldman Sachs advised a government steering committee managing the consolidation of Aldar Properties and Sorouh Real Estate.
The bank was also said to be involved in a merger valuation plan for the Abu Dhabi and Dubai bourses. The plan was later called off.
Meanwhile, Malaysian authorities have filed criminal charges against two of the bank’s former bankers Tim Leissner and Roger Ng Chong Hwa over the 1MDB scandal.
