KUALA LUMPUR (Nov 9): Goldman Sachs Group has applied to the High Court (criminal) here to be made a party in the Malaysian Anti-Corruption Commission (MACC)’s proceedings against law firm Messrs Chethan Jethwani & Co to obtain documents pertaining to 1Malaysia Development Bhd’s (1MDB) settlement against the US-based financial institution.
Deputy public prosecutor CH Law told judge Datuk Muhammad Jamil Hussin about the application, when the law firm's case was called up.
Law then sought to have the application to transfer the case to High Court judge K Muniandy’s court, be deferred until Goldman Sachs’ application was decided.
Krishna Dallumah, who appeared for Goldman Sachs with Datuk Prem Ramachandran, informed Jamil that their client has written in earlier this week to intervene in the matter, as their client’s rights would be affected if the court allowed the commission’s application.
Krishna added that Section 126 of the Evidence Act 1950 imposed a legal obligation on all solicitors to protect and keep confidential any information obtained from their clients, and this includes the advice given by the firm to their client.
He also said that Goldman Sachs’ application should be decided first, as the financial institution is objecting to the prosecution’s bid to have the case transferred to another court.
“We (Goldman Sachs) want to be heard prior to the application to transfer. We feel that should be a factor only once we are allowed to intervene. Therefore, we would like to be allowed to intervene to be a party in the transfer proceedings, so that our right and our clients’ position is protected,” Krishna added.
Messrs Chethan Jethwani had appeared for Goldman Sachs in the negotiation with 1MDB, where a settlement was reached in August 2021.
Datuk K Kumaraendran, who appeared for the law firm, indicated that Goldman Sachs is not willing to waive their rights for the document to be handed to the MACC.
Following this, Jamil fixed Jan 8 next year, to hear Goldman Sachs’ application to intervene.
The judge has also allowed the Malaysian Bar, represented by Anand Raj, to be amicus curiae (friend of the court) to be an observer in the proceeding.
Anand Raj said the Bar also wants access to court documents in relation to the criminal proceedings.
MACC filed motion to seek documents in relation to 1MDB settlement
On Oct 11, MACC had filed a notice of motion at the High Court against Chethan Jethwani and another law firm, Rosli Dahlan Saravana Partnership (RDS), to compel them to produce documents related to the settlement between 1MDB, Goldman and local financial institution AmBank.
In the motion, MACC claimed that it was investigating the firms under Section 17(a) of the MACC Act for the offence of giving or accepting gratification and Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activity 2001 (AMLA) for purported money laundering offences.
MACC contended that the defence of privileged communication under Section 46(2) of the MACC Act and Section 126(1) of the Evidence Act 1950, does not apply to the two offences being investigated.
MACC is seeking a court order for the production of, among others, the two law firms’ accounts and all correspondence with their clients pertaining to the settlement deal.
The anti-graft agency also claimed that it was seeking the documents from RDS, to determine purported transactions of gratification and money “layering” between Goldman and RDS.
Chethan Jethwani, in reply to the MACC’s application to seize the documents, cited that he was bound by the legal professional privilege and that he was alarmed with the MACC’s application, as well as MACC’s initial raid into Chethan Jethwani’s office last month (to retrieve the said documents).
He said that Goldman is currently in dispute with the Malaysian government over the global settlement agreement, as it had brought the matter to the London Court of International Arbitration last month.
Chethan also pointed out that MACC’s money laundering unit director Datuk Mohamad Zamri Zainul Abidin was personally involved in the settlement negotiations, as were representatives from the Attorney-General’s Chambers, the Securities Commission, the National Anti-Financial Crime Centre, Inland Revenue Board and the Treasury Department.
On Thursday, Jamil also fixed Feb 2, 2024 to hear the prosecution’s application to transfer the motion involving Chethan Jethwani to Muniandy’s court, where a similar application is being heard on RDS.
The MACC’s proceeding against lawyer Rosli Dahlan and RDS is fixed for mention before Muniandy on Thursday afternoon.