US investment bank Goldman Sachs is benefiting from paying Malaysia less than what the Pakatan Harapan government asked for in the deal to recoup funds siphoned from 1Malaysia Development Berhad (1MDB), said DAP secretary-general Lim Guan Eng today.

Goldman Sachs, which will pay US$2.5 billion (RM10.5 billion) as part of a deal with Perikatan Nasional, shows the government’s “complete lack of public accountability and transparency on a matter of public interest and importance”, he said.

Lim said Prime Minister Muhyiddin Yassin must explain why Malaysia allowed the bank to benefit.

“Even Goldman Sachs confirms that this is a good deal to resolve all the criminal and regulatory proceedings in Malaysia against (the bank).

“Not only will criminal charges against 17 of their current and former directors be dropped, no further charges would be brought against Goldman Sachs, its subsidiaries, or any of their directors, officers and employees related to 1MDB,” Lim, who is Bagan MP, said in a statement today.

He added only former Goldman Sachs employees Tim Leissner and Roger Ng had faced legal action.

Besides the US$2.5 billion, the deal with Malaysia stipulates that the country will receive at least US$1.4 billion in proceeds from assets related to 1MDB seized by governmental authorities around the world.

Lim said Goldman Sachs had said that this guarantee of US$1.4 billion “does not present a significant risk exposure to the firm”.

“In other words, Goldman is asserting that its US$1.4 billion guarantee that Malaysia would receive from assets related to 1MDB seized by government authorities throughout the world, will not likely cause it to make any significant payments.

“Goldman’s exposure is likely limited to the US$2.5 billion cash payment.”

This clearly showed it was a “good deal”, Lim said, because former attorney-general Tommy Thomas has said that Malaysia would receive the US$1.4 billion form the US Department of Justice “in any event, independent of this settlement with Goldman”.

“In other words, Malaysia’s right to receive the US$1.4 billion was not in any way dependent on the Goldman Sachs settlement,” Lim said.

The US$2.5 billion that the bank will only end up paying Malaysia is just one third of the US$7.5 billion the Pakatan Harapan federal government had claimed.

“Will Prime Minister Tan Sri Muhyiddin come clean on why they fell short of US$5 billion and explain the facts fully to Malaysians?” Lim asked. – August 6, 2020.