KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has cautioned Goldman Sachs against dishonouring its settlement with the government over the global financial giant’s role in the 1Malaysia Development Bhd (1MDB) corruption scandal.
Commenting on the financial services firm’s allegations that Malaysia had “intentionally undervalued” an asset to force the company to pay an interim payment of US$250 million (RM1 billion), Anwar urged Goldman to remember its responsibilities.
“Given a fair deal, (Malaysia) is supposed to be paid much more than that (RM1 billion). I intend to deal with them (Goldman) if this issue is not settled amicably.
“If they pressure us on this, I will have no choice (but to take action) since I have a mandate from my people (who are) struggling to live (while) you have your billions of profit and squandering.
“You cannot just get away with ignoring your moral and financial responsibility,” he said in an interview with Bloomberg Television in Singapore.
Appealing for Goldman to settle its financial debt to Malaysia, Anwar implied that the firm’s connivance played a role in the 1MDB scandal, which has gained global infamy.
“Without the complicity of international finance institutions, particularly Goldman, 1MDB would not have happened.
“My only appeal is for them to settle this deal with Malaysia because 1MDB is known throughout the world, it is there and in the books.
“Don’t think that you (Goldman) can dismiss this as something small (or) use your strengths to dictate your own terms,” he said.
It was previously reported that Goldman Sachs had helped raise US$6.5 billion (RM26.9 billion) for the sovereign wealth fund, with more than US$4.5 billion (RM19.1 billion) stolen from 1MDB by high-level officials at the fund and their associates between 2009 and 2015.
In October, 2020, Goldman agreed to pay about US$2.9 billion (RM12 billion) and its Malaysian subsidiary pleaded guilty to a corruption charge to settle probes into alleged lootings of billions of dollars from 1MDB and bribery handouts to secure business contracts.
The settlement called for Goldman to make a one-time interim payment of US$250 million if Malaysia does not receive at least US$500 million (RM2.1 billion) in assets and proceeds by August 2022.
However, in a filing last year, Goldman said that there was a disagreement between the company and Malaysia over whether the government had received the US$500 million in proceeds by the August deadline.
The filing also accused Malaysia of having “unilaterally reduced” the value of one asset by US$80 million (RM339 million) while declining to include substantial additional assets in the accounting of assets and proceeds recovered.
At the time of its filing, Goldman said that the parties had a three-month window to resolve the dispute, failing which the matter would be taken to arbitration.
Meanwhile, Anwar said that the government is still attempting to recover other assets linked to 1MDB, labelling the process as a “horrendous sort of problem that must be dealt with”.
“Frankly, I can’t say for now how much we can recover (of 1MDB-linked assets), but there’s much more that we should be able to do.
“It is not fair that because of the excesses of a few, the whole country has to deal with this problem,” he added. – The Vibes, January 31, 2023
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