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Asset Owners

Mubadala Investment Co. suspends Goldman Sachs Group

Mubadala Investment Co., Abu Dhabi, suspended activities with Goldman Sachs Group (GS) pending the outcome of an investigation into a scandal involving 1Malaysia Development Berhad, Mubadala spokesman Brian Lott confirmed.

Malaysia filed criminal charges against the U.S. bank in relation to the 1MDB scandal in December 2018. Authorities alleged Goldman misled investors when the bank knew that proceeds from 1MDB bond sales it had arranged would be misappropriated. 1MDB is a state-owned investment fund.

The Malaysian government is seeking fines in excess of both the $2.7 billion of allegedly misused funds and the $600 million in fees received by Goldman on the deals.

"We have suspended any activities with Goldman Sachs pending the outcome of the litigation. The only exceptions are engagements signed prior to the litigation, which will continue as per contractual terms," Mr. Lott said. Additional details could not be learned.

Mubadala has 465.5 billion UAE dirham ($126.7 billion) in assets.

Bloomberg contributed to the story.