3-11-2023 (KUALA LUMPUR) Rosli Dahlan, a prominent lawyer with extensive ties to top national politicians and business groups, finds himself entangled in serious legal issues. As a central figure in a high-profile investigation by the Malaysian Anti-Corruption Commission (MACC) concerning his role in negotiating the 1Malaysia Development Bhd (1MDB) settlement with Goldman Sachs, Rosli now faces a widening police inquiry related to the collapse of low-budget carrier MYAirline.
Multiple sources from the Malaysian police and lawyers familiar with the situation reveal that Rosli, along with seven others, was recently detained by the police for questioning regarding the MYAirline’s downfall. MYAirline is linked to a company named i-Serve Online Mall, which has been embroiled in soliciting deposits unlawfully from both Malaysians and foreign residents in the country.
Rosli, a 62-year-old lawyer who was originally a Singapore national and is now a Malaysian citizen, was detained on the evening of October 26. A remand order was subsequently sought the following morning, and he was released on October 28 after facing inquiries.
Although Rosli refrained from commenting on his detention in relation to the MYAirline and i-Serve Online Mall investigations, he submitted an affidavit on October 26 to the Malaysian High Court to contest the MACC’s request for 1MDB-related documents. In the affidavit, he asserted that he was a victim of “political persecution” amidst the ongoing confrontations between Prime Minister Anwar Ibrahim and former Premier Muhyiddin.
According to Rosli, Prime Minister Anwar has been critical of the Muhyiddin government for various issues, such as the debt write-off at the state-owned plantation company Felda Holdings and the 1MDB recovery settlement. Anwar’s critique has had an “underlying theme” that Muhyiddin and his associates had exploited the country’s assets.
Rosli is associated with the law firm Rosli Dahlan Sarvana Partnership (RDS Partnership), currently embroiled in a legal dispute with the MACC over the 1MDB case. His affiliation with the firm and his role as a personal lawyer to former Premier Muhyiddin, who faces corruption and money laundering charges, have made him a target for these investigations. During Muhyiddin’s tenure, Rosli played a vital role as a legal trouble-shooter for the government, particularly in dispute negotiations related to 1MDB.
Rosli contended that the focus of political attacks has shifted recently towards him and his firm, RDS Partnership. He asserted that this shift occurred because he was perceived as the primary advisor for Muhyiddin’s defense team and the main counsel for the civil cases involving Muhyiddin and the political party Bersatu.
Prime Minister Anwar, in public statements, has criticized the US$3.9 billion settlement reached by the previous Muhyiddin-led administration with Goldman Sachs in August 2020, claiming that it was poorly negotiated. He has also indicated that the government aims to compel the US banking giant to return to the negotiation table to secure additional compensation. This compensation would be for the central role played by Goldman Sachs in arranging US$6.5 billion in 1MDB bonds, which eventually turned out to be elaborate embezzlement schemes.
Rosli was actively involved in the negotiations with Goldman Sachs, working alongside a Malaysian government team led by former Finance Minister Tengku Zarul Aziz, who now serves as the Minister of International Trade in the Anwar government. The MACC conducted raids last month on RDS Partnership and another legal firm, Chetan Jetwani & Company, which had represented Goldman Sachs. These actions were part of a broader investigation by the MACC into allegations of conspiracies among lawyers to reduce the settlement amount associated with the 1MDB case.
In his affidavit challenging the MACC’s document requests, Rosli alleged that he had observed the enforcement agency being used as a tool of oppression against the government’s political opponents. He also recounted an incident from 2007 when he was arrested on fabricated corruption charges and publicly shamed due to his representation of a senior police officer. The matter was eventually resolved with a personal apology from the then MACC chief commissioner Tan Sri Abu Kassim Mohamed.
The court hearing for the 1MDB-Goldman Sachs case is scheduled for the second week of this month. Meanwhile, Rosli is facing increased scrutiny due to a broader police investigation into the recent collapse of MYAirline, which carries significant political implications.
After MYAirline ceased its operations on October 12, former Premier Muhyiddin denied any involvement with the troubled budget carrier, claiming that certain unnamed individuals were trying to tarnish his reputation. The police inquiry into MYAirline began two weeks ago with the arrests of its founder, Allan Goh Hwan Hua, along with his wife Neow Ean Lan and son Sean Goh Tse Han.
Police later revealed that five more individuals had been arrested, including a prominent 62-year-old lawyer who was not identified. These arrests were associated with a broader investigation into the flow of funds between i-Serve Online Mall, a company tied to MYAirline, and led to the freezing of 15 bank accounts.
MYAirline’s difficulties have deepened further in recent days, with claims of unpaid wages from its employees and the suspension of its operating license by the industry regulator, the Malaysian Aviation Commission (MAVCOM), effective from November 1.
