KUALA LUMPUR: Datuk Seri Najib Razak's defence in the ongoing 1Malaysia Development Bhd (1MDB) trial today blamed United States investment bankers Goldman Sachs as the culprits behind embezzlement of the sovereign wealth fund.
Najib's lead counsel Tan Sri Muhammad Shafee Abdullah said it was obvious there was a sophisticated criminal conspiracy by insiders to defraud 1MDB and Goldman Sachs was the biggest culprit in it.
His accusation was met with an affirmative reply from Mohd Hazem Abdul Rahman, the prosecution witness Shafee was cross examining.
"I believe so, based on the reports," Hazem, who is the former chief executive of 1MDB, said from the witness stand.
Earlier, Shafee said it was obvious Goldman Sachs had crafted an elaborate scheme to embezzle 1MDB by working with insiders in the wealth fund, including fugitive businessman Low Taek Jho, better known as Jho Low, former 1MDB executive director Terence Geh, former 1MDB legal officer Jasmine Loo, former 1MDB chief executive Datuk Shahrol Azral Ibrahim and former chief financial officer Azmi Tahir.
However, Hazem said he could not comment on that.
Shafee later continued with his conspiracy theory by pointing out that many dubious and misleading statements had been made by those in the wealth fund which were now proving to be untrue.
It was previously reported that Goldman Sachs had agreed to pay nearly US$3 billion to end a probe of its role in the 1MDB scandal.
The bank's Malaysian subsidiary also admitted in a US court that it had paid more than US$1 billion in bribes to win work raising money for 1MDB.
US officials had then said the record settlement reflected Goldman Sachs central role in a massive corruption scheme.
One of Goldman Sach's former partners, Tim Leissner, has also pleaded guilty in the US to conspiring to launder money and violating foreign bribery laws. Another executive is awaiting trial on foreign bribery charges.
Goldman Sachs has also reached a US$3.9 billion settlement with the Malaysian government for its role in the corruption scandal.
Najib, 70, is facing four counts of abuse of power for using his position as the then prime minister, finance minister and chairman of the 1MDB board of advisers to receive gratification of RM2.28 billion.
He is also facing 21 counts of money laundering involving over RM4.3 billion. The trial before High Court judge Collin Lawrence Sequerah continues.