MP calls for full details of Goldman Sachs settlement

The government has reached a settlement with Goldman Sachs that will see Malaysia recovering RM16.63 billion. (Bloomberg pic)

KUALA LUMPUR: Subang MP Wong Chen today urged Finance Minister Tengku Zafrul Abdul Aziz to fully disclose the details of Putrajaya’s RM16.6 billion settlement with Goldman Sachs.

He said the terms of Goldman Sachs’ guarantee, amounting to US$1.4 billion, were vague, and that Malaysians could not assess the true value of the compensation without further details.

“Every guarantee has a time frame. These are important terms we should know. What exactly is the Goldman Sachs guarantee? What efforts is Goldman Sachs putting in to recover the said amount of US$1.4 billion?” he asked in a press conference at the Parliament lobby today.

“Is the US$1.4 billion part of what the US government has already recovered and/or is in the process of recovering?

“What time frame is given to Goldman Sachs to recover that amount before they have to pay Malaysia the US$1.4 billion?”

Wong said the settlement should not be a final solution since the 1MDB scandal would cost Malaysia between RM40 billion and RM50 billion in losses, depending on the amount Putrajaya could recover.

He also urged Tengku Zafrul to disclose the legal implications of the settlement in terms of criminal liability, saying Putrajaya should not allow criminals to get away with only a financial penalty.

“I urge the Perikatan Nasional government to disclose its efforts in recovering money from Jho Low and his associates. What progress, if any, has been made on that front?” he asked.

Putrajaya reached a settlement with Goldman Sachs last week that would see the country getting back US$3.9 billion (RM16.63 billion).

Tengku Zafrul on Saturday said Goldman Sachs would pay US$2.5 billion in cash as well as guarantee at least US$1.4 billion paid from proceeds from assets bought with misappropriated 1MDB funds.