KUALA LUMPUR: Goldman Sachs's lawyer Chetan Jethwani contended that the recent attempt by the Malaysian Anti-Corruption Commission (MACC) to circumvent solicitor-client privilege was aimed at gaining an unfair advantage in the on-going dispute over the US$6.5 billion 1Malaysia Development Berhad (1MDB) bond settlement.
Goldman Sachs is filing for arbitration against the government in a UK court, as tensions escalate over a settlement linked to its role in the 1MDB investment-fund scandal.
The senior lawyer said this in his reply to the anti-graft body's application to obtain documents related to the settlement between his client and the government of Malaysia recently.
Chetan also disclosed the nature of the questions posed by the MACC during his visit to their headquarters last week.
"The questions posed to me during the statement recording sessions related to the reduction of the agreed settlement sum from an alleged $9.7 billion to $3.9 billion.
"I stated that these were false and erroneous understandings of the facts and it was a matter of public record that the government was advised to and did in fact offer a sum of $4 billion by way of settlement.
"It is therefore impossible for there to be a reduction from $9.7 billion to US$3.9 billion which arose as a matter of corruption.
"The entire explanation as to why and how the government came to accept the settlement sum was also publicly explained," he said.
Chetan said the MACC ought to be fully aware of these matters as they were presented to the Anti-Money Laundering Division head Datuk Mohamad Zamri Zainul Abidin.
He said the MACC's affidavit seeks to implicate him in a settlement that the government had achieved with AmBank.
"I stated that I have had no dealings with AmBank and nothing to do whatsoever with the settlement achieved between the government and Ambank.
"The applicant has not produced the basis of the information received on which they have relied to commence this investigation and the basis on which they have relied to secure privileged information.
"I state that the law requires extremely strong prima facie evidence which is free-standing and independent before the court can ever consider breaching privilege," he said.
Chetan added the entirety of the motion is based on vague, unsubstantiated and inherently incredible statements casting unjustified aspersions on his and his client's credibility.
The MACC filed the application at the High Court on Oct 11 to compel 1MDB's lawyer Rosli Dahlan, Chetan, and their law firms Rosli Dahlan Saravana Partnership (RDS) and Chetan Jethwani & Co. (CJ & Co.) to surrender the impugned documents.
Both law firms were also heavily involved in former prime minister and Perikatan Nasional chairman Tan Sri Muhyiddin Yassin's criminal and civil matters.
MACC senior enforcement officer Mohamad Sabri Mohd Latif who is the plaintiff in the suit, said the commission had launched an operation codenamed 'Ops Canai' to investigate Rosli, who is suspected of receiving bribes from Goldman Sachs and laundering funds relating to the settlement.
The plaintiff is seeking, among other things, the letter of appointment for RDS and CJ & Co. as attorneys for 1DMB's and Goldman Sachs, respectively.
MACC is also seeking both the law firm's bank statement and official emails between RDS, CJ & Co, Finance Ministry, 1MDB, and Goldman Sachs.