KUALA LUMPUR, July 27 — Subang MP Wong Chen urged the government today for full disclosure of its terms of settlement with US investment bank Goldman Sachs over the issuance of 1MDB bonds.

He said this was needed as the scandal could cost taxpayers up to RM50 billion, depending on the success of asset recovery efforts.

"In that context, a settlement with Goldman Sachs touted at US$3.9 billion (RM16.6 billion) is not a final solution. 

"What is more worrying is that the terms are vague on the matter of the bank’s (Goldman) guarantee, amounting to US$1.4 billion (RM5.95 billion),” he told reporters today during a press conference at the Parliament building here. 

It was reported on Friday that the US investment bank has reached a settlement with the Malaysian government over the multibillion-dollar 1MDB scandal. 

The two sides reportedly said the deal includes a US$2.5 billion cash payout by Goldman and a guarantee by the bank to return at least US$1.4 billion in assets linked to the bonds. 

Wong also asked what efforts Goldman was putting into the recovery of the US$ 1.4 billion and whether this was in fact already included in what the US government already recovered as part of its kleptocracy action related to 1MDB.

He also asked what time frame was given to Goldman to recover the assets before they must be delivered to Malaysia.

"Without full disclosure to the above questions, Malaysians cannot properly assess the true value of the compensation. 

"The Perikatan Nasional government has already inflated the Covid-19 financial support to RM295 billion, will it also inflate numbers in this settlement case too?” he added. 

Wong also called upon the government to fully disclose the ramifications of the settlement to Goldman’s liability to existing criminal charges.

"The government must make sure that they (Goldman) don’t get away with criminal charges as this is a criminal case. 

"The government should not allow persons directly involved in criminal activities to get away with just a financial penalty,” he said. 

Reuters reported on Friday that Malaysian prosecutors filed charges in December 2018 against three Goldman Sachs units for misleading investors over bond sales totalling US$6.5 billion that the bank helped raise for sovereign wealth fund 1MDB (1Malaysia Development Bhd).

Goldman Sachs has consistently denied wrongdoing, saying that certain members of the former Malaysian government and 1MDB lied to it about how proceeds from the bond sales would be used. The units of Goldman Sachs pleaded not guilty to the charges.

Goldman Sachs confirmed the US$3.9 billion settlement and said it had reached an agreement in principle with Malaysia to resolve all criminal and regulatory proceedings in the country involving the firm.

US and Malaysian authorities say about US$4.5 billion was stolen from 1MDB in an elaborate scheme that spanned the globe and implicated former Malaysian prime minister Datuk Seri Najib Razak and Goldman Sachs, among others. 

The Kuala Lumpur High Court will deliver its verdict in the case against Najib tomorrow, the first of several corruption trials he faces linked to the 1MDB scandal.

Najib has denied any wrongdoing and pleaded not guilty to all the charges against him.