Guan Eng cannot be taken seriously
In a 1MDB related matter, Switzerland’s Federal Administrative Court in St. Gallen has decided against the regulator FINMA's assessment that BSI Bank should disgorge USD 96.4 Million in ill-gotten profits earned from BSI's handling of 1MDB related funds.
While the Court agreed that violations of Swiss law had occurred, the Court could not see how FINMA had computed the profits.
In the Court's words.FINMA's computations were incomprehensible. The Court has ordered FINMA to re-do its sums.
Meanwhile, in Malaysia, the Finance Minister Lim Guan Eng, assisted by his political adviser Tony Pua, and other advisers from KPMG and PwC continue to demand that Goldman Sachs hand over USD 7.5 Billion in order to avoid criminal prosecution in Malaysia. The decision is not Guan Eng's to make, Malaysia has not plea bargain laws, and the figure has yet to be justified.
The Swiss decision illustrates how difficult recovering losses from the service providers is going to be.FINMA's 1MDB investigation began more than 4 years ago, and one can safely assume that FINMA's expertise is somewhat more advanced than that of Team Guan Eng.