Najib blames 'systemic failure' in 1MDB

Sheridan Mahavera Sheridan Mahavera Updated 5 years ago · Published on 18 Jan 2019 5:21PM · 10 Comments

Najib Razak says Goldman Sachs is a household name and was given 'very attractive fees' to look after the bond and protect Malaysian interests. – The Malaysian Insight pic by Kamal Ariffin, January 18, 2019.

INVESTMENT bank Goldman Sachs’ role in the 1Malaysia Development Bhd scandal reflected a “systemic failure” of the entire financial process in the scandal-ridden state firm, said former prime minister Najib Razak.

Najib, the founder of 1MDB blamed for the firm’s scandal by the current government, said that it was not just the failure of “one person”.

“Goldman Sachs is a household name and they were given very attractive fees (to look after the bond). They were supposed to protect our interests,” Najib told reporters on the campaign trail of the Cameron Highlands by-election.

Najib also rejected the accusation by Goldman Sachs CEO David Solomon who yesterday said the bank’s mishandling of two 1MDB bonds six years ago involved high-level Malaysian officials.

“That’s his opinion. He cannot shift the blame. They have a fiduciary duty, as do everyone else on the board and management. I will accept the blame if I had done something wrong, but as I have said, it was a systemic failure.”

Yesterday, Solomon apologised to Malaysians over the bank’s role in the 1MDB scandal.

“It’s very clear that the people of Malaysia were defrauded by many individuals, including the highest members of the prior government,” Solomon said at a conference call with analysts after reporting the investment bank’s fourth-quarter earnings yesterday.

In November, Tim Leissner, who once headed Goldman Sachs’ Southeast Asian unit, pleaded guilty to violating US anti-bribery and money-laundering laws and agreed to pay US$43.7 million (RM184 million) in restitution of ill-gotten gains.

Another former Goldman Sachs banker, Roger Ng, or Ng Chong Hwa, is languishing in a Malaysian jail while the US Department of Justice seeks his extradition.

Solomon apologised for Leissner’s role in the debacle but reiterated that Goldman Sachs had been misled by Leissner and senior officials in the Malaysian government about the role of a key intermediary in the scandal, Low Taek Jho, better known as Jho Low.

Earlier today, Finance Minister Lim Guan Eng took a swipe at Solomon, saying an apology over the 1MDB debacle was not enough.

Lim said Goldman Sachs must also return US$7.5 billion to the Malaysian government.

“An apology is not enough. We are seeking the US$7.5 billion,” Lim said.

“Would Goldman Sachs have apologised if we did not change the government on May 9?”

Lim said Najib should stop being in denial about the largest corruption scandal in the country’s history.

Najib presently faces 39 criminal charges of corruption, embezzlement and abuses of power related to the 1MDB scandal. – January 18, 2019.

Sign up or sign in here to comment.

Comments

  • The man asked the court for a court order to discuss 1MDB..and yet he himself is constantly flouting it

    Posted 5 years ago by Julian Nagelsmann · Reply

    • Correction...The man asked the court for a gag order prohibit public discussion on 1MDB..and yet he himself is constantly flouting it

      Posted 5 years ago by Julian Nagelsmann · Reply

  • Shameless man

    Posted 5 years ago by SmartTraveler * · Reply

  • it was not just the failure of one person...
    Of course it's not one person's fault. It's the fault of 1MDB adviser, the ex-finane minister and the ex-prime minister.

    Posted 5 years ago by Chee yee ng · Reply

  • But you were not only the PM but also finance minister, were you gullible or just acting stupid. How did not notice anything was amiss when you and FLOP were travelling the world spending hundreds of millions that was not yours. What about your faduciary to the people of Malaysia. Enough ...go to jail.

    Posted 5 years ago by Alphonz Jayaraman · Reply

  • Errr.... who asked all related agencies to stop investigating 1MDB? It was Najib-cum-the then Finance Minister-cum-the then Prime Minister-cum-1MDB Advior-thief.

    Posted 5 years ago by Malaysia Baru 09052018 · Reply

  • A disgrace to Malaysia! Thick skinned person. Tak tahu malu.

    Posted 5 years ago by Malaysia Baru 09052018 · Reply

  • The country entrusted you to look after the country and 1mdb. . . and you handed it over to the few crooks who swindled the country wealth. How smart!

    Posted 5 years ago by Tanahair Ku · Reply

  • in other words, jibby you literally admitted that you were sleeping while in charge and would you also agrees to the point that it was systemic failure that vast amount of money that goes to your personal bank account.

    Posted 5 years ago by Teruna Kelana · Reply

  • Otak udang skarang baru cakap.

    Posted 5 years ago by Will Be Humble · Reply