Mubadala suspends Goldman over 1MDB lawsuit

Gavel_law booksAbu Dhabi’s sovereign wealth fund Mubadala has halted any new business dealings with Goldman Sachs over a lawsuit connected to the 1MDB case involving the Malaysian state fund. A subsidiary of Mubadala, International Petroleum Investment Company (IPIC), filed a lawsuit against Goldman in November 2018 in order to recover the losses sustained through dealings with 1MDB. In its lawsuit, IPIC alleges that IPIC "played a central role in a long-running effort to corrupt former executives of IPIC and its subsidiary Aabar Investments, and mislead IPIC and Aabar", aiming to further the business of Goldman and 1MDB. The 1MDB case has been subject to corruption investigations in at least six countries and it is estimated that as much as $4.5 billion was misappropriated by the fund’s officials between 2009 and 2014. A spokesman for Mubadala told Reuters that it has “suspended any activities with Goldman Sachs pending outcome of the litigation”. The only exceptions to this suspension are “engagements signed prior to the litigation, which will continue as per contractual terms”. ©2019 funds global mena

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