Rosmah got luxury goods from 48 vendors in 14 jurisdictions: 1MDB

1MDB has claimed that Rosmah Mansor was the recipient of luxury goods bought with US$346 million (RM4.7 billion) of its funds between 2010 and 2014.

The troubled sovereign wealth fund alleged that these luxury goods were procured from 48 different vendors in 14 different jurisdictions.

This was stated in 1MDB’s statement of claim in its US$346 million lawsuit against the wife of incarcerated former prime minister Najib Abdul Razak.

The statement of claim was filed at the Kuala Lumpur High Court last Tuesday, around four weeks after the writ of summons was filed on May 9.

First plaintiff 1MDB alleged that the payments for the luxury goods, allegedly received by first defendant Rosmah, were made with funds misappropriated in five phases of an alleged fraud, in which these monies were meant to be utilised for investment purposes.

“Between the period of 2010 and 2014, eight entities registered in offshore jurisdictions including, at the material time, the 7th to 11th plaintiffs (collectively, offshore paying entities) made 320 payments totalling US$346,010,489 to 48 different vendors of luxury goods based in no less than 14 jurisdictions.

“There, payments were made for the purchase of luxury goods by and for the first defendant, and these luxury goods were received by the first defendant.

“These payments are traceable to and/or represent the monies misappropriated from the first to sixth plaintiffs, that is the funds.

“The payments and the beneficial receipt of the luxury goods by the first defendant form part of the wider fraud and money laundering scheme orchestrated by, among others, Najib, Najib’s proxies, and former fiduciaries and trustees of the first to sixth plaintiffs (fiduciaries and/or trustees), in which billions of ringgit were misappropriated and laundered through various offshore entities,” 1MDB and 10 other plaintiffs claimed.

The second to fifth plaintiffs are 1MDB’s subsidiaries, namely 1MDB Energy Holdings Limited, 1MDB Energy Limited, 1MDB Energy (Langat) Limited, and Global Diversified Investment Company Limited, formerly known as 1MDB Global Investments Limited.

The sixth plaintiff is SRC International Sdn Bhd, a former subsidiary of 1MDB that later became fully owned by the Minister of Finance Incorporated (MOF Inc).

The seventh to 11th plaintiffs are offshore entities in liquidation, namely Affinity Equity International Partners Limited, Alsen Chance Holdings Limited, Blackrock Commodities (Global) Limited, Blackstone Asia Real Estate Partners Limited, and Brightstone Jewellery Limited.

Alleged procurement of thousands of items

On May 9, 1MDB and the 10 other plaintiffs filed the civil action against Rosmah and a second defendant, Shabnam Naraindas Daswani.

The plaintiffs alleged that Rosmah received thousands of items of jewellery, watches, and handbags procured by Shabnam, whereby the items were purportedly bought not with the duo’s own monies but with funds allegedly misappropriated from 1MDB and the other plaintiffs.

The plaintiffs said their claim is premised on “equitable proprietary claim and/or unconscionable or knowing receipt of trust property or its traceable proceeds and/or dishonest assistance in breach of trust or fiduciary duty and/or dishonest enrichment”.

Besides seeking an order to compel Rosmah to pay over US$346 million to them, the plaintiffs also seek for the civil court to compel her and the other defendant to pay damages or equitable compensation to be assessed later, aggravated and/or exemplary damages, among other reliefs sought.

Following the filing of the statement of claim, Rosmah now has the opportunity to file her statement of defence by July 4.

Law firm Lim Chee Wee represented the plaintiffs. Law firm Reza Rahim & Rajivan is acting for Rosmah.

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