Goldman says relied on documents provided by IPIC execs in 1MDB US$1.75b bond issue

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KUALA LUMPUR (Dec 20): Goldman Sachs said the financial services provider relied on documents provided by International Petroleum Investment Co (IPIC) executives, when Goldman Sachs proceeded with the US$1.75 billion (about RM7.32 billion) IPIC-guaranteed bond that Goldman Sachs raised for 1Malaysia Development Bhd (1MDB) in 2012, The Straits Times reported today.

The Straits Times reported that Goldman Sachs acknowledged that an IPIC board resolution was not obtained for the bond issue.

The report quoted Goldman Sachs as saying in a written response: "The firm relied on documents provided by IPIC executives and legal opinions of outside counsel evidencing IPIC's authority to enter into the guarantee."

It was reported that Goldman Sachs did not elaborate. It was reported that Abu Dhabi government officials did not respond to requests for comment on why IPIC committed itself to the guarantees without board approval.

At the time of writing this report, 1MDB had not issued a statement in response to The Straits Times report.