The Pakatan Harapan (PH) Government had in 2018 filed a suit in London against Abu Dhabi’s International Petroleum Investment Corporation (IPIC) to unwind a settlement arrived between them and 1MDB on 31 May 2017.
Under the settlement which was reached with the intervention of the then Prime Minister, Dato’ Seri Najib Razak, IPIC will be repaid the total of US$1,205,450,000 by 31 December 2017 for the advances IPIC made to 1MDB in June 2015.
Separately, 1MDB and MoF Inc. had to assume responsibility for all future interest and principal payments under the two bonds issued by 1MDB, amounting to US$3.5 billion, which were previously guaranteed by IPIC.
The settlement effectively placed the entire burden of repayment for the fraudulent bonds on 1MDB and the Malaysian Government, and completely absolved IPIC of any obligations. The PH Government had sought to unwind the settlement agreement because we believed that it was fraudulently concluded by Najib, at the expense of the Malaysian tax-payers. This is because Najib had a vested interest in ensuring that the 1MDB scandal remained contained, without further incriminating him and the BN Government in the multi-billion ringgit brewing scandal.
As of November 2019, the PH government had succeeded in winning our case in the UK Court of Appeal to ensure that the case against IPIC would be contested in an open court, instead of via closed-door arbitration. IPIC had obviously preferred closed-door arbitration to ensure that the unsavoury details of the entire bond issuance, which was arranged by Goldman Sachs, remains under wraps.
The strategy by the then Attorney-General, Tan Sri Tommy Thomas, was to ensure that the Malaysian people will receive the maximum possible compensation from IPIC for the losses 1MDB had suffered in their sham ‘collaboration’.
However, we were shocked to read, again, in The Sarawak Report that the Muhyiddin government has decided to halt the Court proceedings against IPIC. Apparently, Foreign Minister Dato’ Seri Hishamuddin Hussein has been tasked to negotiate directly with the Abu Dhabi government for a ‘another’ settlement.
With the litany of quick and sometimes, bewildering settlements by the Muhyiddin government in cases relating 1MDB, Malaysians are now concerned that we are once again being taken for a ride.
In May, Riza Aziz, Najib’s stepson was let off the hook with a discharge not amounting to an acquittal over a 1MDB-related money laundering case which had amounted to US$248 million.
Less than 2 weeks ago, Goldman Sachs also reached a settlement to compensate the Malaysian government the amount of US$2.5 billion, instead of the US$7.5 billion which the PH government had demanded. Both suits which the PH government had initiated against Goldman and its 17 past and present directors were immediately dropped before they were brought to court.
Global financial media have generally believed that Goldman got away cheap and easy for their role in arranging US$6.5 billion of bonds for 1MDB. In fact The New York Post reported that Goldman Sachs CEO David Solomon immediately celebrated the settlement as a DJ at the Hamptons.
Given the dubious track record of the Muhyiddin administration in reaching settlements, Malaysians are understandably concerned that the interests of ordinary Malaysians will once again be betrayed. Dato’ Seri Hishamuddin must immediately address these concerns on the veracity of the exposé by The Sarawak Report, failing which the suit against IPIC must be allowed to complete its course to ensure the best possible outcome for the rakyat.