BANGI: Malaysia has a strong and fair chance to counter Goldman Sachs' dispute over not wanting to fulfill the US$1.4 billion (RM6.62 billion) asset recovery guarantee for 1Malaysia Development Bhd (1MDB), as agreed upon in the settlement agreement sealed in August 2020.
1MDB asset recovery taskforce chairman Datuk Seri Johari Abdul Ghani stated that based on the signed agreement, the government demanded that Goldman Sachs pay US$2.5 billion (RM11.81 billion) in cash and guarantee the recovery of US$1.4 billion in assets.
However, he said that currently, Goldman Sachs has only paid US$2.5 billion, refusing to fulfill the US$1.4 billion asset recovery guarantee.
He explained that this is because Goldman Sachs believes that the government has already recovered through fines imposed on AmBank (RM2.8 billion) and the settlement agreement with the International Petroleum Investment Company (IPIC) (US$1.8 billion).
However, he clarified that the government disputes this, emphasising that the fines imposed on Ambank and the settlement with IPIC are not included in the scope of the US$1.4 billion asset recovery guarantee.
"Based on our understanding, the promise was that they (Goldman Sachs) would pay US$2.5 billion and then the $1.4 billion guarantee, but they (Goldman Sachs) paid US$2.5 billion.
"However, when it comes to the US$1.4 billion, Goldman Sachs does not want to fulfill their obligation under that asset recovery guarantee because they claim Malaysia has already received recovery from funds and other settlements we made, but that is not recovery for Malaysia.
"Therefore, we believe we have a strong and fair chance to fight this arbitration," he said at a press conference during the Malaysian Palm Oil Board (MPOB) Excellence Awards 2023 here today.
He said this when asked to comment on the latest developments regarding the status of 1MDB asset recovery and the dispute with Goldman Sachs.
In today's statement, the 1MDB Asset Recovery Task Force is considering initiating legal proceedings against several foreign banks that facilitated the transfer of funds related to 1MDB without properly implementing the Know Your Customer (KYC) process at that time.
Johari, in the statement, said that the task force is fully committed to transparently handling matters related to 1MDB and ensuring that all parties involved are held accountable.
"The complexities of the settlement agreement require careful examination, and the 1MDB Taskforce is actively participating in the arbitration process to ensure a fair resolution in the best interests of the Malaysian people," he added.
Johari also stated that the task force is also examining whether the negotiators and lawyers representing the Malaysian government at the material time may have failed in their fiduciary duty or were negligent in arriving at the settlement agreement.
He mentioned that such lapses on the part of negotiators and lawyers, in failing to negotiate a fair and clear settlement agreement have compromised the Malaysian government's position in the ongoing dispute.