Muhyiddin-led Putrajaya's settlement with Goldman Sachs obviously questionable
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| Muhyiddin Yassin |
An MP has urged the government to investigate the role of those involved in Putrajaya’s settlement with Goldman Sachs over the 1MDB scandal, saying Malaysia has been short-changed in the matter, reported FMT.
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| Johari Abdul Ghani |
Datuk Johari Abdul Ghani (BN-Titiwangsa) said Goldman Sachs acted as the financial adviser and lead manager for three bonds issued by 1MDB worth US$6.5 billion, earning US$606 million in fees in the process.
In 2020, the government led by then prime minister Tan Sri Muhyiddin Yassin reached a settlement with Goldman Sachs that involved the investment bank paying the government US$2.5 billion in cash and guaranteeing the return of US$1.4 billion in 1MDB assets seized by authorities around the world.
“What is strange is that we know they are guilty, yet we settled for so little – only US$2.5 billion, when our exposure was US$6.5 billion,” he told the Dewan Rakyat today.
“How did the lawyer who represented 1MDB (arrive at the settlement)? By right, the lawyer representing 1MDB should act in the best interests of 1MDB.”
Johari said it was “clear-cut” that Goldman Sachs had “cheated” the government.
“How can they be allowed to run away just like that, when members of the senior management of Goldman Sachs were involved,” he asked, adding that the US Department of Justice had confirmed the involvement of the bank’s senior personnel in the 1MDB scandal.
He said the probe into the 1MDB issue focused only on the political aspect, resulting in only “one person” going to court.
“What happened to members of the senior management (of Goldman Sachs) who were earning millions?” he asked, adding that it was wrong for those involved in the scandal to get away simply by offering themselves as witnesses in the case.
He said it was “cartoonish” that many were involved but only one person had paid the price.
“I want the government to look at the role of the lawyer who represented 1MDB and those involved in the negotiation.
“Why didn’t they take legal action against Goldman Sachs in the US?
“Why did they negotiate without putting the file (containing evidence of Goldman Sachs’ wrongdoing) on the table?”
Johari said if 1MDB had taken legal action against Goldman Sachs in the US, the bank would have come under a lot of pressure as it would not have been able to underwrite loans.
“When it comes to the recovery of funds, why did we sacrifice the money we should have been getting from the world’s number one investment bank? They make billions in profits,” he said.
Previously, Johari accused Goldman Sachs of taking advantage of “inadequate negotiations” by Muhyiddin’s administration to delay the repayment of US$1.4 billion to Putrajaya.
He had also called on the government to publish the terms of the settlement agreement, which has so far been withheld from public scrutiny allegedly due to a confidentiality provision which prohibits its release.
The appearance and act on the above video are for illustration purpose only.
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Adaptation by Fauzi Kadir
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