Court temporarily bars Tarek Obaid, PetroSaudi from using 1MDB-linked funds
The Kuala Lumpur High Court today granted the government’s request for a temporary injunction preventing PetroSaudi International Limited from using over US$340 million (RM1.45 billion) allegedly linked to 1MDB.
The injunction also applied to the oil services company's director Tarek Obaid and three others.
Judge Mohd Nazlan Mohd Ghazali issued the order upon...
The Kuala Lumpur High Court today granted the government’s request for a temporary injunction preventing PetroSaudi International Limited from using over US$340 million (RM1.45 billion) allegedly linked to 1MDB.
The injunction also applied to the oil services company's director Tarek Obaid (above) and three others.
Judge Mohd Nazlan Mohd Ghazali issued the order upon hearing the application. He was informed that the funds are in an escrow account in the UK.
The application by the government would enable the fund to be frozen.
“The court has the power to issue an ad-interim (temporary) order. Now I issue (the order)," Nazlan said, adding that it will be in force until the court hears the main asset forfeiture application.
The asset forfeiture application will be heard on Aug 28.
In its application filed on July 10, the government said the US$340,258,246.87 at London-based Clyde & Co LLP owned by PetroSaudi and its subsidiary PetroSaudi Oil Services (Venezuela) Limited was derived from money-laundering.
The application was filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001.
The government also filed, under the same application, a prohibition on dealings with money held under the intermediate account name of Temple Fiduciary Services Limited. An affidavit supported the application.
In the affidavit supporting the application, MACC investigating officer Mohd Afiq Abdul Aziz alleged the money was linked to a conspiracy involving Tarek, former premier Najib Abdul Razak, and fugitive businessperson Low Taek Jho, also known as Jho Low (below).
PetroSaudi was formerly a joint venture partner with 1MDB.
Earlier today, Tarek's lawyer Yusof Zainal Abiden and PetroSaudi Venezuela's lawyer Alex Tan told the court that they have received instructions to oppose the application.
Yusof said his client required three weeks to reply to the prosecution’s affidavit.
However, deputy public prosecutor Budiman Lufti Mohamed requested the court to issue a temporary order while awaiting the full trial next month.
This followed an arbitration decision in London on Friday which sided in favour of PetroSaudi Venezuela.
“This is as we wish to ascertain the money at Clyde & Co will not be distributed to the respondents (while awaiting trial) following the arbitral tribunal in London which sided with PetroSaudi,” Budiman told the court.
He added that if no temporary prohibition was issued over the movement of funds, the forfeiture suit would be rendered academic.
Yusof, however, questioned the provision for the court to issue such an order.
“That would mean the idea of opposing this application could be lost,” he said.
He added that the MACC had not acted to file the application until Friday, despite knowing about the funds in January.
“The fact is, Malaysia fully knew about the arbitration process between PetroSaudi Oil Services and (Venezuelan government-owned) Petróleos de Venezuela,” said Tan.
Meanwhile, lawyer Muhammad Nizamuddin Abdul Hamid, representing the MACC, disagreed with Tan that the commission did not take earlier steps concerning the funds.
“The (UK’s National Crime Agency) NCA advised us to obtain a court order so it can be upheld there,” he said.
In a press statement, the MACC said it had forwarded the interim order to authorities in the UK through Mutual Legal Assistance (MLA), so that the funds can be frozen pending the disposal of the asset forfeiture case.
The anti-graft body said it was working with Malaysia’s Attorney-General’s Chambers, National Anti-Financial Crime Centre (NFCC), Bank Negara, as well as international agencies including the NCA, UK’s International Anti-Corruption Coordination Centre (IACCC), US’ Federal Bureau of Investigation (FBI), US Department of Justice (DOJ) and Swiss enforcement agency.
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