Court sets Dec 11 for govt's bid to prevent PSI from using 1MDB funds

The Kuala Lumpur High Court today fixed Dec 11 to decide on the government’s application to block PetroSaudi International Ltd (PSI) and its director Tarek Obaid from using US$340 million (RM1.61 billion) linked to 1MDB held in a client’s account at a law firm in the United Kingdom.

Judge Ahmad Shahrir Mohd Salleh set the date during a proceeding, which was attended by deputy public prosecutor Norinna Bahadun, PSI’s lawyer Alex Tan and Obaid’s counsel Mohd Yusof Zainal Abiden.

The other respondents in the application are PetroSaudi Oil Services (Venezuela) Limited (PSOS-VZ), Clyde & Co LLP, and Temple Fiduciary Services Limited.

In 2020, the court granted the government’s application for an interim order to block the parties from moving the money linked to 1MDB and keeping it in an escrow account held by the firm.

The interim order is to maintain the status quo of the parties until the disposal of the government’s prohibition application seeking an order to restrain any dealings on the funds belonging to PSI and PSOS-VZ which are currently in the escrow account.

The Malaysian government claimed that the money involved came from 1MDB in a joint venture with PSI to establish 1MDB PetroSaudi Ltd in 2010.

The application was filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

In August this year, international media reported that the Swiss Federal Criminal Court convicted Obaid for the embezzlement of US$1.8 billion from 1MDB and he was sentenced to seven years’ imprisonment.

- Bernama

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