Daily Times

A former Goldman Sachs banker accused of involvement in the multi-billion-dollar 1MDB scandal will only be extradited to the United States after legal proceedings against him in Malaysia are completed, a minister said.

Huge sums of public money were purportedly stolen from Malaysian state fund 1MDB and used to buy everything from yachts to art in a scheme that allegedly involved former premier Najib Razak and contributed to his government’s election defeat.

Goldman’s role is under scrutiny as the Wall Street titan helped arrange $6.5 billion in bonds for 1MDB. Authorities in Malaysia and the US accuse former employees of bribery and stealing billions of dollars, and investigators believe cash was laundered through the US financial system.

Malaysian Ng Chong Hwa, a former managing director at the bank, was indicted in November when US authorities also lodged an extradition request. He has been in custody in Malaysia since the US indictment.

Malaysia also filed charges against Ng, more commonly known as Roger Ng, as well as Goldman.

Authorities in Malaysia and the US accuse former employees of bribery and stealing billions of dollars

At a court hearing last week, Ng agreed to stop fighting the extradition request and said he wanted to be sent to the US within 30 days.

But Malaysia’s government must approve his extradition, and Interior Minister Muhyiddin Yassin said Ng’s case in Malaysia must go ahead first.

“We will honor the extradition but we will prioritize the case in Malaysia until it is completed. This is the advice of the attorney-general, and we will abide by it,” Yassin said.

Ng’s case will likely come before the Malaysian courts again next month, he said.

Ng was charged in Malaysia in December with four counts related to 1MDB, and has pleaded not guilty. He faces up to 40 years in jail if convicted.

As well as Ng, former Goldman partner Tim Leissner and the bank’s subsidiaries are also accused of making false statements in order to steal billions of dollars, and of bribing officials.

Leissner has already pleaded guilty in the US to 1MDB-linked charges.

Published in Daily Times, February 21^st 2019.