Probe deal with Goldman, Wong Chen tells auditor-general

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Goldman Sachs has agreed to a US$3.9 billion settlement with the government over the 1MDB scandal. (Reuters pic)

PETALING JAYA: Subang MP Wong Chen has urged the auditor-general to intervene and probe the government’s US$3.9 billion settlement with Goldman Sachs Group Inc over the 1MDB scandal.

The PKR MP also asked if the settlement was classified as an official secret, expressing disappointment at de facto law minister Takiyuddin Hassan for saying Putrajaya could not divulge the full details of the agreement due to a confidentiality clause.

Wong Chen urged Takiyuddin to reconsider his position and to allow a bipartisan committee of 10 MPs to study the agreement, saying Malaysians were demanding justice and “complete restitution” of the stolen money.

“If the minister insists that this viewing will amount to a breach of the confidentiality clause, I would like the attorney-general to issue a public legal opinion on this matter.

“I also very much doubt that Goldman Sachs, the complicit party in the 1MDB crimes, will dare to take legal action to prevent elected Malaysian MPs from accessing and viewing the settlement agreement.

Wong Chen.

“Lastly, I appeal to the auditor-general to intervene and investigate the settlement agreement to make the government accountable and to protect the public’s interest in this settlement,” he said in a statement today.

Wong Chen reiterated that his request for MPs to be given access to study the agreement was not unreasonable, adding that hiding the facts about the settlement would be causing “second injury” to Malaysians.

In July, Goldman Sachs agreed to a settlement with Malaysia that included a payment of US$2.5 billion and an “unusual” provision that the bank would guarantee that Malaysia would recoup an additional US$1.4 billion from 1MDB assets seized around the world.

As part of the deal, Malaysia dropped the criminal charges against the bank.

Former prime minister Dr Mahathir Mohamad had called on Putrajaya to withdraw its agreement to accept the US$2.5 billion, saying the money to be paid to the government was “nothing compared to what is due to Malaysia”.

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