PETALING JAYA: An Umno leader has urged party members involved in a settlement agreement entered by the government with Goldman Sachs three years ago to give a full picture of how the deal was arrived at.
“The rakyat is entitled to full disclosure of all events leading up to the agreement, the terms of settlement and the government’s justification for it,” said Umno Youth permanent chairman Wan Agyl Wan Hassan.
“Presently we do not even know who led the negotiations on the government’s behalf and which lawyers were involved.”
He also called for clarity about the timeline of events leading up to the signing of the agreement on Aug 18, 2020.
“The matter is one of public interest since it involves the finances of the country,” said Wan Agyl.
“Public concern has also been heightened by recent reports attributed to the prime minister and the 1MDB task force chief which suggests that the entire process may have been rushed through
“As an important component party in the unity government, it is our duty to render our fullest cooperation.”
Last week, 1MDB task force chief Johari Ghani told FMT he was surprised by the speed at which the settlement was reached with Goldman Sachs.
“The principal payment of the bonds was only due in May 2022,” he said, adding that there was “ample time for the government to negotiate”.
Johari said that on June 30, 2020, he met Muhyiddin, then finance minister Tengku Zafrul Aziz and Attorney-General Idrus Harun to discuss a potential claim against Goldman Sachs.
On July 3, 2020, he put his proposal in writing to Muhyiddin, who sent it on to Idrus on July 15, 2020.
By July 24, 2020, however, the government had already signed a “Points of Agreement” with Goldman Sachs. A full settlement agreement was executed on Aug 18, 2020.
Last month, Prime Minister Anwar Ibrahim was quoted by Utusan Malaysia as saying that he thought the whole deal had been “rushed through”.
Wan Agyl called for those in Umno who were involved in the negotiations to set the record straight immediately.
“With six state elections expected to be held in the next few months, we need to show accountability to the rakyat,” he said.
Between 2012 and 2013, Goldman Sachs acted as underwriters for US$6.5 billion raised by 1MDB by way of three bond issues. The New York based bank earned a massive US$606 million in fees for their services.
Much of the funds raised were siphoned off, leaving 1MDB to suffer losses of between US$7 billion and US$9.6 billion.
The settlement agreement executed on Aug 18, 2020 saw the government and 1MDB recover US$2.5 billion from the bank, inclusive of the US$606 million fee.
The settlement also included an obligation on the part of the bank to ensure the recovery of foreign assets traceable to 1MDB funds worth US$1.4 billion within five years.
Under the terms of the agreement, the government would be entitled to an interim payment of US$250 million if assets worth US$500 million are not recovered within 24 months.
In an interview with Bloomberg TV in January, Anwar alleged that the bank had reneged on that payment, which fell due in August 2022. - FMT
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