Update M'sian Govt urged to lodge police report against Goldman on 1MDB support letter

by **Cals** Tue 11 Nov 2014, 02:05

Update
M'sian Govt urged to lodge police report against Goldman on 1MDB support letter

By Cynthia Blemin / TheEdge Markets.com | November 10, 2014 : 3:09 PM MYT

KUALA LUMPUR (Nov 10): The Malaysian Government have been urged to lodge a police report against financial services entity Goldman Sachs for furnishing investors with letter of support purportedly from the local authorities for 1Malaysia Development Bhd's (1MDB) US$3 billion (RM9.98 billion) bonds.
DAP National Publicity Secretary and MP for Petaling Jaya Utara Tony Pua told reporters at Parliament lobby today that Deputy Finance Minister Datuk Ahmad Maslan informed the Parliament that out of the RM36 billion of debt owed by 1MDB, the government had only provided a guarantee of RM5.8 billion.
"He (Ahmad Maslan) said it (letter of support) does not exist. This claim by the government of Malaysia will not only rock the Malaysian but scandalise the international financial market," said Pua.
Last Saturday, Ahmad Maslan said in a statement the government guarantee for 1MDB involved only RM5.8 billion.
"I would like to inform that there is no letter that guarantees more than the amount stated. The Government did not issue any more guarantees other than the RM5.8 billion for 1MDB or its wholly owned subsidiaries, including for the US$3b bonds," Ahmad Maslan said then.
Today, Pua said based on what Ahmad Maslan had told Parliament last week in his winding up speech on the budget debate, Goldman Sachs had not only charged exhorbitant fees to 1MDB amounting to 9.4% of the US$3 billion bonds sold but distributed fraudulent letters from the Malaysian government.
Pua stressed that Malaysia's global reputation was at stake with the letter of support, which was deemed genuine by the international investors.
Meanwhile, PKR MP for Pandan Rafizi Ramli said the debate on 1MDB should be allowed by Speaker Tan Sri Pandikar Amin Mulia as a substantive motion in the next Parliament sitting said
Parliament's next sitting will take place in March, 2015.
Rafizi noted that the speaker could reject this motion as he would breach the standing orders.
But the speaker could prevent it from being debated by delaying the motion in the order papers if it was filed in this session.