Govt fails to forfeit RM80m cash, jewellery linked to 1MDB

The government has failed in its legal action to forfeit RM80 million in 1MDB-linked cash, jewellery, and other assets seized from Pavilion Residences in 2018.

The Kuala Lumpur High Court this morning dismissed the forfeiture suit against Obyu Holdings Sdn Bhd, the owner of the condominium units in Kuala Lumpur.

Judge Muhammad Jamil Hussin ruled that the prosecution on a balance of probability failed to show that the assets are the result of unlawful activity.

He also denied an application by deputy public prosecutor Faten Hadni Khairuddin to stay today’s ruling pending the prosecution’s appeal to the Court of Appeal.

Obyu is the sole respondent in the government’s 1MDB-linked forfeiture suit. However, former prime minister Najib Abdul Razak, his wife Rosmah Mansor, and Lebanese jeweller Global Royalty Trading SAL are third-party claimants.

The ruling, with no stay order on it, in effect would lead to the return of the seized assets to Obyu, namely 2,435 pieces of jewelry, seven watches, and 29 handbags.

In his decision set for this morning, Jamil ruled that the evidence and testimony put in court by the prosecution are insufficient to show that the assets are the result of the money laundering of funds from 1MDB.

The judge noted that the prosecution failed to prove on a balance of probabilities that the jewelry, watches, and handbags were bought with funds unlawfully taken from the Malaysian sovereign wealth fund.

“On a balance of probability, the applicant (prosecution) failed to show that the seized assets are the result of an offence or from unlawful activity.

“With regards to the application to forfeit the jewelry, watches, and handbags are dismissed,” Jamil said.

Najib was represented by lawyer Muhammad Shafee Abdullah while counsel Azamuddin Abd Aziz appeared for Rosmah.

Previously, the prosecution’s forfeiture bid sought RM680 million worth of assets and cash, but it has since been revised to the current figure.

On Aug 5 last year, the same court allowed Najib’s separate third-party claim for the return of RM114 million in seized cash also sought by the prosecution in the legal action.

Najib is currently serving a 12-year jail term in relation to the RM42 million SRC International corruption case. SRC was a former subsidiary of 1MDB.

He also used to be finance minister, adviser emeritus to SRC and chairperson of 1MDB’s board of advisers.

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1MDB forfeiture: Najib, Rosmah seek 7 watches, RM1m bracelet

Najib, Rosmah, Lebanese jeweller to inspect 11,991 seized items next month