Daily Management Review

iPic sues Goldman Sachs


International Petroleum Investment Company appealed to the New York court with a lawsuit against Goldman Sachs, accusing the American investment bank of corruption and bribing former fund managers.

David Holt
David Holt
IPIC claims that "Goldman Sachs colluded with a number of other companies to bribe former top managers of IPIC and Aabar Investments, playing a central role in long-term actions to bribe them and mislead IPIC and Aabar." Wall Street Journal reported about this with reference to the document.

In addition to filing a lawsuit in New York by the IPIC, Goldman Sachs has also been called to the courts in Abu Dhabi and London. Among the defendants in the lawsuit are also listed former top managers of IPIC and Aabar Investments. According to IPIC, former managers of UAE investment funds were engaged in money laundering and received bribes in transactions with 1Malaysia Development Berhad.

Abu Dhabi International Petroleum Investment Company entered into a number of transactions with the Malaysian Sovereign Fund 1MDB in 2012–2014. Transactions with the Malaysian fund included investments in construction of residential real estate, power plants and a number of other projects in Malaysia.

After the scandal with 1MDB that broke out in 2015, IPIC, Aabar Investments and Mubadala Development Company were merged into Mubadala Investment Company, the sovereign fund of the United Arab Emirates.

Malaysian authorities are investigating former employees of Goldman Sachs, as well as the bank’s involvement in transactions with 1MDB. Malaysian President Mahathir Mohamad in an interview with CNBC said that "Goldman Sachs employees helped to rob us."

source: reuters.com