In July 2020, the Government of Malaysia arrived at a settlement of U$2.5 billion cash payout by Goldman Sachs over the latter’s culpability in the global 1MDB scandal.
Goldman Sachs had collected exorbitant fees of nearly US$600 million in arranging 3 bond offerings by 1MDB to raise a total of US$6.5 billion in 2012 and 2013. By colluding with 1MDB officials and its agent, Low Taek Jho, the global investment bank assisted the Najib administration to embezzle billions of ringgit from 1MDB.
Based on the charges filed by the United States Department of Justice, up to US$2.7 billion were siphoned to acquire art works by masters such as Picasso, Monet, Rothko and Basquiat; a luxury yacht worth US$250 million as well as a rare pink diamond for US$27 million for the wife of Dato’ Seri Najib Razak, Rosmah Mansor. At least RM2.6 billion was also deposited in Najib’s personal accounts held in Ambank prior to the 2013 general election.
Despite vehement criticisms by the opposition and the civil society in and out of the Parliament, the Muhyiddin Government has steadfastly refused to unveil the terms of the settlement with Goldman Sachs, which was deemed unsatisfactory. Law Minister Datuk Takiyuddin Hassan said that the settlement agreement remains bound by a confidentiality clause.[1]
There is now a new growing unsettling concern among the Malaysian public today the settlement is not as ‘clean’ as it was made out to be. It has been alleged that the professional lawyers involved in the settlement exercise were paid huge fees, part of which were kicked back to the Prime Minister’s party, Bersatu.[2]
Bersatu information chief, Datuk Wan Saiful Wan Jan, came out all guns firing, claiming that the rumours and allegations were ‘slander’ and ‘character assassination’ of the Prime Minister.[3] Most laughably, he emphasized that Bersatu “was formed to fight for integrity and transparent governance”. If it was really about ‘transparent’ governance, then why is the Muhyiddin government hiding behind the veil of secrecy?
Under the Pakatan Harapan administration, we had ensured that the salient details of all contracts and agreements, particularly the fees for mega-projects were made available to public scrutiny. As the Malay saying goes, ‘berani kerana benar’. However, the Perikatan Nasional government is behaving exactly like the Najib administration by hiding secrets and protecting vested interests.
Yesterday, 1MDB lawyer Rosli Dahlan lodged a police report against former Umno Supreme council member Datuk Seri Lokman Noor Adam and Kuang assemblyman Sallehuddin Amiruddin for criminal defamation.[4] While he denied the allegations above, there was no truth unveiled in Rosli’s statement.
The Prime Minister, Tan Sri Muhyiddin Yassin must end his elegant silence over the matter and provide the transparency he preached to end the doubts that have been raised over the matter once and for all. While his government may have unnecessarily signed a non-disclosure agreement (NDA) with Goldman Sachs over the settlement, the fees 1MDB had paid to its professionals would not be covered under the NDA and can be revealed to Malaysians.
The failure to do so will only ensure that Muhyiddin’s legacy will soon be as tainted as that of Najib’s. There can be no bigger irony if funds which were painstakingly recovered from Goldman Sachs, a process which started under the Pakatan Harapan administration, to repay the enormous debts of 1MDB caused by Najib’s kleptocracy, are now being siphoned in part for the benefit of Muhyiddin and Bersatu’s political interest.