KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has expressed his administration’s willingness to negotiate with overseas banking firms named in a lawsuit filed by sovereign fund 1Malaysia Development Bhd (1MDB).
Speaking during an interview with the Philippines’ ABS-CBN station aired on Friday, Anwar responded in the affirmative when asked if he would consent to negotiations between Malaysia and two out of seven defendants in the suit: Deutsche Bank (Malaysia) Bhd and J.P. Morgan (Switzerland).
“Yes...It is better if they come up with some reasonable proposals (that Malaysia) can adjust,” he said.
He stressed, however, that such proposals must be “a fair deal,” saying: “I cannot be complicit in letting (the financial institutions) get off scot-free without taking some responsibility for their misdeeds.”
In May 2021, 1MDB as the plaintiff filed a suit worth US$1.83 billion (RM8.4 billion) against the seven defendants for alleged breach of contract, negligence, and criminal conspiracy for the misappropriation of 1MDB funds.
Coutts & Co, Petrosaudi International, Petrosaudi Holdings (Cayman), Tarik Obaid, and Patrick Mahony were also named as defendants.
The plaintiff alleged that all the defendants conspired to defraud 1MDB and provided dishonest assistance, causing losses to the company as well as damaging 1MDB’s reputation and good name.
It was reported in September last year that high court judicial commissioner Roz Mawar Rozain had recused herself from the case, leaving it to be heard by another judge.
It is understood that Roz Mawar previously held the position of deputy director of prosecution and civil enforcement of the Securities Commission, which is one of the agencies involved in the 1MDB investigation.
In October, 2020, Goldman Sachs 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 Sachs 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 Sachs 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.
Late last month, Anwar had cautioned Goldman Sachs against dishonouring its settlement with the government over the global financial giant’s role in the 1MDB corruption scandal. – The Vibes, March 5, 2023
