Whither US$248m, Guan Eng asks after 1MDB suit dropped

Summary

• Former finance minister Lim Guan Eng has asked where the sum will be recovered from 1MDB dropping its suit against Najib Abdul Razak’s stepson.

• The DAP chairperson says “Public interest requires a full accounting”.

Former finance minister Lim Guan Eng has questioned where Malaysians will recover the US$248 million (RM1.09 billion) following 1MDB’s withdrawal of its civil claim against Najib Abdul Razak’s stepson.

Lim, who is also the DAP chairperson, noted that no reason has been given for the withdrawal of the suit against Riza Aziz.

“MACC had previously said that Riza and his lawyers are working towards a global settlement on the recovery of the US$248 million.

“However, no details have been disclosed as to how such a recovery would be conducted. With the settlement with Goldman Sachs currently disputed, public interest requires a full accounting of how Malaysians will get the US$248 million from Riza,” he added in a statement

Lim (above) said the Malaysian government had claimed that Goldman Sachs had allowed misappropriation and bribes of US$4.5 billion out of the US$6.5 billion in bonds that it raised for 1MDB in 2012 and 2013.

“In 2020, the Malaysian government and Goldman Sachs had reached a settlement, requiring Goldman Sachs to pay US$2.5 billion while guaranteeing the return of US$1.4 billion of 1MDB assets seized by the authorities around the world, in exchange for Malaysia dropping charges against the bank.

“To date, Goldman Sachs had not fulfilled its obligations of that settlement,” he added.

Riza and Red Granite

Yesterday, it was reported that 1MDB withdrew its US$248 million civil suit against the former premier’s stepson and his companies during proceedings at the Kuala Lumpur High Court.

1MDB lead counsel Rabindra S Nathan of Messrs Shearn Delamore told the court he had received instructions from the sovereign wealth fund to withdraw the case.

The proceedings by 1MDB against Riza, Red Granite Pictures Incorporated and Red Granite Capital Limited began on Oct 16 last year, with Riza’s defence commencing last week.

Last week’s proceedings saw MACC special operations director Zamri Zainul Abidin testifying for the defendants Riza and Red Granite.

Zamri had reportedly testified that Riza received a discharge not amounting to an acquittal for five counts of money laundering for the same US$248 million.

He also testified that in the representations sent to the Attorney-General’s Chambers, Riza and his lawyers said they would work towards a global settlement on the recovery of the US$248 million.

Red Granite Pictures, co-founded by Riza and American film producer Joey McFarland, had produced the Academy Award-winning "The Wolf of Wall Street" starring Leonardo DiCaprio, and other movies.

On May 7, 2021, 1MDB and its subsidiaries filed a lawsuit against Riza and his two companies for purportedly receiving US$248 million in funds misappropriated from 1MDB, which they allegedly misused for personal gain including by financing film production and buying up various properties.

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