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November 22, 2018updated 23 Nov 2018 10:46am

Abu Dhabi investment fund sues Goldman Sachs over 1MDB case

An Abu Dhabi investment fund has filed a lawsuit against Goldman Sachs for suffering losses due to the bank’s embroilment in the 1MDB Malaysian state fund scandal.

International Petroleum Investment Company (IPIC) and its subsidiary Aabar Investments- accused Goldman of playing a central role in the scandal and bringing significant losses to the firm.

IPIC alleged that the bank bribed ex-IPIC managing director Khadem Al-Qubaisi and ex-Aabar Investments CEO Ahmed Badawy Al-Husseiny after conspiring with unnamed individuals from Malaysia.

These officials were accused of misusing the companies’ names to facilitate criminal schemes and reap personal benefits. This was done at the cost of IPIC and Aabar’s business interests, the companies alleged.

IPIC also filed a criminal complaint against Qubaisi and Husseiny for accepting bribes.

In response, a Goldman Sachs spokesman said: “We are in the process of assessing the details of allegations and fully expect to contest the claim vigorously.”

Goldman Sachs has been recently under investigation for its alleged involvement in the 1MDB scandal. The government of Malaysia has also requested compensation for Goldman’s role in 1MDB and recently agreed to extradite a financer embroiled in the case to the US

Earlier this month, two former-Goldman Sachs bankers Ng Chong Hwa and Tim Leissner were accused by US authorities of laundering billions of funds from 1MDB.

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