PH leaders call for justice for all 1MDB conspirators after Goldman Sachs settlement

KUALA LUMPUR (July 25): Pakistan Harapan's Presidential Council has called for justice to be served against all conspirators involved in the multi-billion ringgit 1Malaysia Development Bhd (1MDB) scandal, following Goldman Sachs' agreement to pay US$3.9 billion (RM16.6 billion) to Malaysia.

In a joint statement, the council said Goldman Sachs' agreement to pay the money as reparations for its role in raising money for the fund, in exchange for all criminal and regulatory proceedings against the bank to be dropped, is proof of the existence of various misconducts and corruption during that period.

It said the process of getting this financial reparation from Goldman Sachs began with the victory of PH against the Barisan Nasional government at the 14th general election in 2018.

“The Presidential Council thanks all parties involved in this effort, including the attorney general at the time who had started the legal process in order to get justice for Malaysians,” the council said, referring to Tan Sri Tommy Thomas.

“Pakatan Harapan stressed that all main characters in the 1MDB ‘scam’ case must be tried in court including individuals named by the United States Department of Justice as ‘MO1’, Low Taek Jho (Jho Low), who are still not arrested. They cannot be allowed to go free,” it said, adding the process of getting justice for the 1MDB issue is still not done and has to be seen to its conclusion.

It also reminded the public that the PH government did not agree with Goldman Sachs' previous offer to return only US$1.75 billion, as the full sum it was claiming was US$7.5 billion.

Following the settlement announced by the finance minister yesterday, the total sum that has been returned to Malaysia so far amounted to RM19 billion, it added.

The statement was co-signed by Pakatan Keadilan Rakyat (PKR) president Datuk Seri Anwar Ibrahim, Party Amanah Negara (AMANAH) president Mohamad Sabu and the Democratic Action Party (DAP) Secretary General Lim Guan Eng.

The US$3.9 billion settlement to Malaysia in relation to the 1MDB debacle is understood to be the biggest settlement for Malaysia, and possibly the largest payout by the international investment bank.

According to the finance ministry's announcement yesterday, the settlement will be split into a cash payment of US$2.5 billion (RM10.65 billion) and a guarantee of a full recovery value of at least US$1.4 billion in assets that are traceable to the diverted proceeds from three bond issuances by the investment bank worth US$6.5 billion.

In addition, Goldman Sachs will assist Malaysia in the recovery of other related assets abroad at its own cost, as acknowledgement of the misconduct of its two former executives in the 1MDB scandal.

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