Why settle for only US$3.9 bil from Goldman Sachs, asks Guan Eng

(FMT) – DAP secretary-general Lim Guan Eng has called on Prime Minister Muhyiddin Yassin to reassure the public that Goldman Sachs does not get off too lightly for its role in the 1MDB scandal.

Referring to this week’s settlement between Putrajaya and Goldman Sachs, which will see US$3.9 billion (RM16.63 billion) returned to Malaysia, Lim said the Pakatan Harapan-led government had claimed US$7.5 billion from the investment bank.

He said the figure included US$1 billion to cover interest.

Yesterday, Finance Minister Tengku Zafrul Aziz said Goldman Sachs will pay US$2.5 billion in cash and guarantee at least US$1.4 billion paid from proceeds from assets bought with misappropriated 1MDB funds.

In a statement today, Lim, the former finance minister, said Goldman Sachs is only paying US$2.5 billion cash, with the remaining US$1.4 billion recovered from assets seized by the US Department of Justice.

“If Goldman Sachs is willing to recover the remaining US$4 billion in stolen assets, and not just US$1.4 billion, the Malaysian government can be justified for settling for US$6.5 billion, and forgo the additional US$1 billion of claims in interest servicing cost on our part,” said Lim.

“To forgo the initial US$7.5 billion claim with only US$3.9 billion ignores the huge debt burden of 1MDB.”

Presently, he said, it would appear that Goldman Sachs is only paying US$2.5 billion cash to resolve the matter with Putrajaya.