Goldman Sachs must follow up on its apology with US$7.5bil compensation in 1MDB scandal

https://youtu.be/XxwX8CRvSks

Goldman Sachs Group Inc should follow up on its apology to Malaysia with a payment of US$7.5bil (RM30.86bil), says Lim Guan Eng.

The Finance Minister said a mere apology from the investment bank over the scandal-ridden 1Malaysia Development Bhd (1MDB) is not enough, unless they pay reparations and compensation.

Lim said Goldman Sachs should understand the agony and trauma suffered by Malaysians as a result of the scandal.

“An apology is not enough.

“An apology with US$7.5bil is what matters.

“At least he (Goldman Sachs CEO David Solomon) accepted that they have to bear and shoulder some responsibility but that is insufficient.

“They have made provisions of around US$561mil (RM2.3bil) but that is not adequate.

“We are seeking US$7.5bil,” he told a press conference here yesterday after announcing the names of the joint lead arrangers for the Samurai bond.

On Thursday, Solomon apologised to Malaysians for former banker Tim Leissner’s role in 1MDB.

Solomon also said it was very clear that Malaysians were defrau­ded by many individuals, including the highest members of the previous administration.

Asked if Malaysia would drop charges against Goldman Sachs with the US$7.5bil payment, Lim quipped: “US$7.5bil ... then we can discuss lah”.

Lim added that it was very clear who the top government official Solomon was referring to as there could only be one person.

“You worked hand in hand, and there has to be accountability. It also involved a breach in fiduciary duty, and I think the banking industry has this obligation to make good the losses that we suffered.

“I think this is at least an admission.

“If not for the change of government, do you think Goldman will apologise? We’re dealing with the largest investment bank in the world,” he said.

Lim added that he found it distressing that Datuk Seri Najib Tun Razak still refused to admit there was something wrong with 1MDB and the entire exercise.

He also lambasted the former premier for passing the buck to Goldman Sachs, and for being in a state of denial for refusing to admit that Malaysians suffered huge losses due to the scandal.

By Royce Tan The Star

Goldman Sachs CEO apologises for ex-banker’s role in 1MDB scandal

NEW YORK: Goldman Sachs Group Inc chief executive officer David Solomon (pic) has apologised to the Malaysian people for former ban­ker Tim Leissner’s role in 1Malaysia Development Bhd (1MDB) scandal, but said the bank had conducted due diligence before every transaction.

Goldman is being investigated by Malaysian authorities and the US Department of Justice (DOJ) for its role as underwriter and arranger of three bond sales that raised US$6.5bil (RM26.7bil) for the sovereign wealth fund.

US prosecutors last year charged two former Goldman bankers for the theft of billions of dollars from 1MDB. Leissner, a former partner for Goldman Sachs in Asia, pleaded guilty to conspiracy to launder money and violate the Foreign Corrupt Practices Act.

“It’s very clear that the people of Malaysia were defrauded by many individuals, including the highest members of the prior government,” Solomon said on conference call discussing the bank’s fourth-quarter results in a report by Reuters.

Solomon said Leissner denied the involvement of any of Goldman’s intermediaries in transactions with 1MDB.

An attorney representing Leissner did not immediately respond to a request for comment.

Roger Ng, the other charged former Goldman banker, was arrested in Malaysia at the request of US authorities and is expected to be extradited, according to John Marzulli, a spokesman for the prosecution.

The DOJ has said that US$4.5bil (RM18.5bil) was allegedly misappropriated by high-level officials of the fund and their associates between 2009 and 2014.

As part of Goldman’s due diligence efforts, Solomon said the bank sought and received written assurances from 1MDB and International Petroleum Investment Co (IPIC) that no third parties were involved in the first two bond sales.

Abu Dhabi’s IPIC had co-guaranteed the 1MDB bonds when they were issued in 2012.

In the final offering, the Malaysian government itself, along with 1MDB, represented that no intermediaries were involved, he said.

“All these representations to Goldman Sachs have proven to be false,” Solomon said.

Goldman Sachs did not disclose any other information about its involvement with 1MDB, but said the impact on its client franchise had been de minimis. Shares of the bank, which reported strong fourth-quarter results earlier in the day, have fallen over 25% in the last three months, after headlines about its involvement with the sovereign wealth fund emerged.

The Malaysian government said in December it was seeking up to US$7.5bil (RM30.8bil) in reparations from Goldman over its dealings with 1MDB. – Reuters

In an immediate reaction yesterday, former Prime Minister Datuk Seri Najib Tun Razak said Goldman Sachs had to take responsibility because they were appointed and paid by 1MDB to take care of Malaysian’s interests.

“We put up a system, the system was there to take care of our interests, you see.

“So if they fail, then they have to take responsibility, because they were appointed and paid by 1MDB to take care of our interests,” Najib said.- The Star

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Abe Statement: Apology, Abapology or Abomb? Crafty rhetoric, insincere politics

Japanese Prime Minister Shinzo Abe delivers a statement in Tokyo on Friday marking the 70th anniversary of the end of World War II. He acknowledged Japan had inflicted "immeasurable damage and suffering" on innocent people but said generations not involved in the conflict should not be burdened with continued apologies. TORU HANAI/REUTERS

BEIJING, Aug. 14 -- As Japanese Prime Minister Shinzo Abe releases an official statement later Friday to mark the 70th anniversary of his country's surrender at the end of World War II (WWII), he is standing at a critical crossroad.

Upon such a highly symbolic and closely watched occasion, Abe has a choice to make, and there is only one way that will lead him and his nation closer to the "normal country" dream he has so frequently shouted from the rooftops.

Choosing a wrong course -- or keeping going astray, given his record on the sensitive history issue -- will undoubtedly carry the second-term prime minister further away from a legacy in nation-building he so desperately needs, as his signature "Abenomics" is losing sizzle.

Any statement that flagrantly flouts the true history and fails to repent Japan's WWII atrocities would be tantamount to Abe dropping a bomb upon his country's international reputation and trustworthiness.

Such an "Abomb" would be particularly sad, as its sole victim would be Japan itself, Abe's motherland, which is the only country in the world that has been A-bombed and still in the healing.

It would also be extraordinarily irresponsible and destructive, not only because its shock waves would blow the chances for his "normal country" ambition to come true anytime soon, but because its fallout would further ail Japan's already morbid ties with its neighbors and stoke regional tensions. If Abe possesses any reasonable level of sobriety, he will not throw an "Abomb" at his own country. Rather, judging from the trial balloons he has released of late, a more likely scenario is that the canny nationalist would offer an adulterated apology.

An "Abapology" -- mentioning such key words as aggression and apology but placing them in a context that waters down their meaning, or releasing nuanced versions in different languages -- would be regrettable.

Such a half-hearted apology would once again reveal Abe's deep reluctance to face up to his country's wartime crimes and take on the noble responsibility on his shoulders in seriously reflecting on the past in order to usher Japan into a world-assuring future.

A muddle-through approach of that kind would be not only unworthy of the great significance of the historic juncture, but indicative of a conspicuous lack of political and historical calcium, which explains to a large extent why Japan remains an "abnormal" country 70 years after WWII.

The only right way forward is for Abe to stop his rightist slide and provide a proper and unalloyed apology -- explicit enough to demonstrate heartfelt remorse and a resolve to abandon his erstwhile troublesome attitude toward WWII history and help dispel the specter of distrust between his country and its neighbors.

Yet should history be any guide, even an apparently whole-hearted apology from Abe would not be enough. It is the least he should do. To realize his "normal country" dream and restore Japan's standing on the world stage, he has to follow up with concrete actions.

By Deng Yushan (Xinhua)

Crafty rhetoric, insincere politics 
(China Daily)

A very cleverly worded speech. An impressive play of the words. That's about everything we could say about Japanese Prime Minister Shinzo Abe's latest statement on his country's unseemly record in World War II.

Abe didn't seem to deviate much from the well-received benchmark statement in 1995 by then Japanese prime minister Tomiichi Murayama. And the key points of that historic speech, including "aggression", "colonial rule", "remorse" and "apology", did find their way into his speech, though with abundant ambiguity.

For many in his audience, his expression of "heartfelt gratitude" to those who have been tolerant of his country and helped it return to the international community might be an unexpected bonus - not unlike his pledge to "squarely face the history of the past". That could be why some believe Abe has delivered more than what had been anticipated, given the discrepancies among its versions in different languages.

That East Asia just got around a potentially explosive occasion that could have escalated tensions is itself something to celebrate. For Japan's vigilant neighbors, however, whether or not Abe included the salient points of the Murayama Statement in his speech is not just a touchstone to gauge his attitude toward history, but the bottom line as well. Once that line is crossed, Japan's deteriorating ties with neighboring China and the Republic of Korea will slide past a point of no return, at least during Abe's term in office.

Abe knows what will come next. So, even after provoking neighboring countries no end, he waved olive branches at them requesting meetings at the highest level. He is yet to get one, precisely because of his betrayal of the Murayama Statement's spirit.

By incorporating the key expressions of that milestone statement, Abe may effectively silence some of his critics, whose latest demand was that his statement include the core Murayama expressions.

But make no mistake, he didn't present an apology of his own. He merely stated the obvious truth that earlier Japanese cabinets had expressed "heartfelt" apologies for the atrocities committed by imperial Japan.

It would be naive to think the tensions paralyzing East Asia will thus be gone. That Abe didn't cross the Rubicon, at best, means he was aware of the dire consequences of doing so and avoided it. And, that tremendous public pressure from home and abroad forced him to squeeze those words into his speech doesn't mean he actually meant it.

Rhetoric counts when dealing with Japanese politicians, for whom whether or not the Abe statement includes those key words makes a difference. Japanese politicians' infamous tradition of "slip of the tongue", however, makes it even more important to see how they act.

Abe's track record belies his claims of commitment to peace and good neighborly relations. That Abe and his advisers had reportedly struggled over whether or not to include Murayama's expressions, that the ruling parties had not agreed on the exact use of the expressions in the final transcript until the very last moment, that Abe managed to avoid directly referring to Japan's war as one of aggression and some of the perished Japanese as war criminals, and that his words became evasive when it came to Japan's colonial rule and the "comfort women" issue all betrayed a sense of reluctance.

Needless to say, reading between the lines of the Murayama Statement and Abe's speech even a casual reader can feel the difference in tones. In contrast to Murayama's sincerity, Abe seemed eager to shut out the past, though its sophisticated wording did hit the sentimental sweet spot at some points. But that will not be possible until Abe acts sincerely to achieve real reconciliation.

Therefore, even after weathering an otherwise imminent crisis, East Asia will continue to struggle in the long shadow of history.

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