Law firm seeking 1MDB consent to disclose privileged material

Rosli Dahlan Saravana Partnership (RDS) has written to 1MDB to seek the Malaysian sovereign wealth fund’s permission to disclose privileged and confidential material.

The law firm’s partner Palpanaban Devarajoo stated this in an affidavit in reply to MACC’s court action for it to hand over several documents in a probe into a settlement entered between Goldman Sachs and the Malaysian government on the US$6.5 billion 1MDB bond issue.

“The firm has written to our former client, 1MDB, on Oct 16 seeking for its consent and authority to disclose privileged and confidential material insofar as the same is relevant to the present application,” the lawyer said in the affidavit dated Oct 16.

Palpanaban said the firm was served with copies of the MACC legal action on Oct 13 around 2.50pm.

“The firm shall be filing its substantive response to the application in due course after the counsel (retained by the law firm for the present matter) has the opportunity to advise us.

“Thus, the firm reserves our rights,” the law firm partner said.

FMT yesterday reported that MACC filed an application at the Kuala Lumpur High Court last week for a court order to compel RDS and another law firm to hand over several privileged documents in the probe into a settlement entered between Goldman Sachs and the government on the 1MDB bond issue.

The online news portal reported that the other law firm is Chetan Jethwani & Company,

The MACC action against RDS was set for today, while the other law firm was yesterday.

In an affidavit, lawyer Chetan Jethwani labelled the entire legal action as MACC's attempt to circumvent solicitor-client privilege, thus showing the whole thing was done purely in bad faith and to obtain an unfair advantage in the ongoing dispute between the government and Goldman Sachs.

Two weeks ago, MACC and officers from the Inland Revenue Board (IRB) attempted a search and seizure at the two law firms.

In a media statement following the incident, Chetan said he objected to the attempted search and seizure on the grounds that the conduct of the MACC and IRB officers was unlawful and indiscriminate, and would result in a violation of legal professional privilege.

Nefarious plan

The lawyer contended that MACC and IRB officers did not comply with the applicable legal provisions set out in the MACC Act 2009 and the Income Tax Act 1967.

Meanwhile, according to a copy of RDS’ letter to 1MDB dated Oct 16 which was part of the exhibit of Palpanaban’s affidavit, the law firm describes as ‘falsehood’ and ‘groundless’ the many media reports citing MACC sources that the Goldman Sachs-Malaysia settlement deal on 1MDB was a ‘bad deal’.

The law firm contended that the allegation that RDS was in a position to manipulate negotiation is "frivolous and without any basis".

RDS pointed out that multiple senior members of the Malaysian government machinery were involved in the rounds of negotiation between the country and Goldman Sachs, among them from the Attorney-General’s Chambers (AGC), the Securities Commission (SC), the Finance Ministry, MACC, and the National Anti-Financial Crime Centre and IRB.

“Given the extensive involvement of various government agencies, the public narrative that RDS was in control and had manipulated Goldman Sachs settlement to benefit Goldman Sachs in exchange for a bribe is absurd and preposterous,” the law firm said.

It contended this was a nefarious plan to smear its reputation, and expressed hope that 1MDB would clarify this matter with MACC, which is treating the law firm as a suspect of a crime.

1MDB: Goldman Sachs hauls M'sia to UK court

1MDB taskforce: Goldman Sachs legal proceedings 'premature'

No client documents seized, says law firm raided by MACC

1MDB asset recovery: MACC confirms probe against lawyer