KUALA LUMPUR (Oct 17): Law firm Rosli Dahlan Saravana Partnership (RDS) has written to 1Malaysia Development Bhd (1MDB) seeking the fund's consent to provide the Malaysian Anti-Corruption Commission (MACC) with some of the documents sought in relation to the settlement agreement concerning Goldman Sachs and AmBank.
The firm said this in its affidavit in reply to the MACC's application before the High Court to compel the firm to produce documents regarding the abovementioned settlements.
"The firm has vide letter dated Oct 16, 2023 written to our former clients 1MDB, seeking for consent and authority to disclose privilege and confidential material insofar as the same is relevant to the present application," Datuk DP Naban, one of the firm’s 17 partners, said in his affidavit filed on Monday.
RDS, along with one of its other partners, Rosli Dahlan, is the subject of one of MACC's applications filed on Oct 11. The agency has also filed another similar application naming lawyer Chetan Jethwani and his firm Chetan Jethwani & Company as respondents.
The anti-graft body's application comes after attempted 'raids' on the firms earlier on Oct 6 in connection to the investigations into allegations that Rosli and Chetan were involved in bribery and money laundering regarding Goldman's US$3.9 billion (RM18.5 billion) and AmBank's RM2.83 billion settlement with the Malaysian government over 1MDB.
The MACC has also said that it needs the documents to determine if the respondents had colluded with Goldman and others in reducing the compensation amount or "asset recovery" in the Goldman settlement and to identify the money flow and "layering" from Goldman's account to accounts of the firms.
Rosli and Chetan have said that the allegations were groundless and to smear their reputations.
Both firms have also issued statements saying that the authorities were not allowed to access any of their clients' documents at their premises during the attempted ‘raids'. They also stressed that the authorities' conduct was in violation of legal professional privilege.
Similarly, the Malaysian Bar has also released a statement saying that the law does not allow the authorities access to “privileged materials and information”. The MACC, however, contends that privileged communication is not applicable in this case as the respondents were investigated under Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
RDS: Narrative that it had manipulated settlement absurd as various govt agencies involved
In the letter which was sent to 1MDB chairman and Secretary General of Treasury Datuk Johan Mahmood Merican on Monday (Oct 16), RDS said the allegations against it were groundless as the series of negotiations over the settlement was conducted by the 1MDB task force comprising officials from the Attorney General's Chambers, Ministry of Finance (MOF), MACC, Securities Commission Malaysia (SC) and National Anti-Financial Crime Centre.
"As chairman of 1MDB and the [Secretary General of Treasury] of MOF, your deafening silence has been detrimental to us. The allegation that RDS was in a position to manipulate the negotiations is frivolous and without any basis," it said in the letter which was an exhibit along with the affidavit seen by The Edge.
It added that on July 24, 2020, the actual negotiation team included "the most senior officers" from these agencies headed by then finance minister Tengku Datuk Seri Zafrul Abdul Aziz. The legal firm said that other members of the 1MDB taskforce, along with MOF senior officers watched the negotiations via a live feed broadcasted at the negotiation venue.
RDS said there were two sets of private lawyers assisting in the negotiations, RDS representing 1MDB and Messrs Logan Sabapathy & Co representing the SC.
RDS added that after the main terms — particularly the settlement sum — were agreed upon, there were further series of negotiations in August 2020 at various government offices to finalise the contractual terms.
"We were made aware that when the draft agreement was finalised, it was tabled to the Cabinet for approval. Given the extensive involvement of various government agencies, the public narrative that RDS was in control and had manipulated the [Goldman] settlement to benefit [the investment bank] in exchange for a bribe is absurd and preposterous," it said.
The firm added that it had also furnished Datuk Seri Johari Abdul Ghani, the new 1MDB task force chairman, with a letter detailing the "facts, rationale and the quantum" of the Goldman settlement.
Can't disclose documents without 1MDB's 'express consent'
The firm also added that both the settlements were paid directly by Goldman and AmBank into the designated bank account.
RDS said it did not "at any time receive any portion" of the settlement from any parties including Goldman, Messrs Chetan Jethwani & Co (one of Goldman's counsels in the agreement), AmBank or 1MDB.
In the four-page letter, RDS said the bulk of the privileged documents sought are now with 1MDB's current solicitors from Messrs Lim Chee Wee Partnership, while the firm has kept copies of the same documents, but it was unable to disclose the "privileged and confidential materials" without 1MDB's "express consent".
A case management for the matter was held before High Court judge K Muniandy where RDS's lawyer M Puravalen informed the court that senior partner Naban's affidavit was filed to inform the court when his client was served and that the firm had written to 1MDB. He added that more affidavits from the firm's partners may follow.
Lawyer Harvinderjit Singh, who appeared for Rosli, said his client was overseas and has yet to file his affidavit. Deputy public prosecutor Law Chin How represented the prosecution on Tuesday.
Muniandy has set Nov 9 for case management.
MACC's application to transfer its similar application against Chetan and his firm before High Court judge Datuk Muhammad Jamil Hussin will also be heard on that day.