PETALING JAYA: Finance Minister Lim Guan Eng believes it is "reasonable" to ask Goldman Sachs for US$7.5bil (RM30.7bil) over its role in the 1MDB scandal, saying it was an act of an institution instead of just a few rogue individuals.
Lim said they were seeking that amount because they did not know what happened to the US$6.5bil (RM26.6bil) that was raised through one issuance.
"The fees were paid for services that were not duly rendered. Breach of fiduciary duty. And finally, the fact that they brokered the deal that was 100 basis points higher than the market rate, that does not make sense. I think many people can do that without paying you US$600mil," he said in an interview with CNN.
When asked what Malaysia would do if Goldman Sachs did not pay Malaysia the amount, Lim said they would take legal action against the bank and that the Attorney General had already initiated action.
"They are going to declare their annual earnings next month. We hope they make the necessary provisions for reparations to Malaysia. We feel that they have to bear responsibility," he said to another question.
Lim said the fact that a senior executive has pleaded guilty and has full access to the former CEO clearly showed that Goldman Sachs was in the know.
"How can you disclaim responsibility when you collected such a huge amount of fees, and at the same time, broadcasting the fact that you were representing Malaysia. I don't think they can run away so easily," said Lim.
He also said that a critical question was why former prime minister Datuk Seri Najib Tun Razak allowed businessman Jho Low to run riot and do as he pleased.
He said they would do whatever it takes to ensure justice is done and that Malaysia will try to get as much of its money back as possible.
"And finally, we want Malaysia, and Malaysians especially, to hold their heads up high again, that Malaysia is no longer a global kleptocracy. We are now a normal, boring democracy," said Lim.
Goldman Sachs has been under scrutiny for its role in helping raise US$6.5bil through three bond offerings for 1Malaysia Development Bhd (1MDB), which is the subject of investigations in at least six countries.
In December, charges under the country's securities laws were filed against Goldman Sachs, its former bankers Tim Leissner and Roger Ng, former 1MDB employee Jasmine Loo and fugitive financier Jho Low in connection with the bond offerings.
The US Department of Justice (DOJ) has said about $4.5bil (RM18.4bil) was misappropriated from 1MDB, including some money that Goldman Sachs helped raise, by high-level officials of the fund and their associates from 2009 through 2014.
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