Leissner agrees to cooperate with the US over 1MDB

By TMR / Pic By BLOOMBERG

Former Goldman Sachs South-East Asia chairman Tim Leissner (picture), who was instrumental in raising billions for troubled 1Malaysia Development Bhd (1MDB), has agreed to assist the US authorities over the state fund’s dealings, according to a news portal.

The Malaysian Insight reported that the ex-investment banker agreed to cooperate with the US authorities after he was stopped travelling back to his house in Austria two months ago.

“There was a US-Austria joint operation, in which they stopped him and asked him about 1MDB.

“He then reached out to Jho Low and the Malaysian’s lawyers, and they told him to cooperate with the US investigators,” a source told The Malaysian Insight.

Jho Low, whose full name is Low Taek Jho, is wanted by the local authorities over the multibillion scandal, which is being investigated in no less than six countries. He is believed to be hiding in Macau.

Leissner, who has been barred from the Singapore financial sector, helped raised more than US$5 billion (RM20.14 billion) for 1MDB in 2012 and 2013.

The investment bank pocketed about US$590 million in fees from the fundraising exercise. Goldman defended the fees paid for the deals, claiming it was based on the risks related to the fundraising.

Malaysia has promised to recover the monies related to 1MDB including the fees paid to the investment banker. — TMR