LIM Guan Eng has questioned the rationale of dropping all criminal charges against Goldman Sachs in exchange for a settlement, which was a third of the US$7.5 billion (RM32.3 billion) demanded by Pakatan Harapan.

The former finance minister said the decision to forgo the initial US$7.5 billion claim with a settlement of US$ 3.9 billion ignores the debt burden of 1Malaysia Development Bhd.

The government guarantee of the debt stood at RM 31.7 billion and would increase to RM41.5 billion if the remaining interest payment until 2038 is added in, he said.

“This sum excludes the RM8.9 billion already paid by the government. This would bring the total cost of 1MDB to the country, including interest of the 1MDB debts, to RM 50.4 billion.

“The deal to drop all criminal charges against Goldman Sachs for only a third of the initial demand of US$7.5 billion follows the decision in to discharge Najib Razak’s stepson Riza Aziz, from five money-laundering charges over US$248 million of funds siphoned off 1MDB in exchange for Riza returning US$108 million.”

Lim said Perikatan Nasional should answer whether justice is served to Malaysians after absolving the global Investment bank of all criminal punishment over its role as accomplice to top Malaysian leaders and their cronies in the scandal.

He called for the explanation on the grounds of public interest and accountability.

The DAP secretary-general said Putrajaya must justify that it was not duped by Goldman Sachs after securing a good deal for the US$2.5 billion cash settlement, instead of US$7.5 billion.

Finance Minister Tengku Zafrul Tengku Abdul Aziz told The Edge that Malaysia struck a better deal compared to what was offered previously.

Putrajaya filed criminal charges against three subsidiaries of Goldman Sachs in a bid to recover $3.3 billion from three 1MDB bond issuances. – August 2, 2020.