1MDB: Court allows MACC to seize RM4m from BSI Bank

Summary

• The Kuala Lumpur High Court allows MACC to seize 1MDB-linked US$954,299.58 parked at a BSI Bank, Switzerland account.

• MACC says no parties object or seek a claim to it in today’s proceedings.

The Kuala Lumpur High Court has allowed MACC to seize US$954,299.58 (about RM4 million) linked to the 1MDB scandal parked in a BSI Bank, Switzerland account.

“Judge K Muniandy granted the order after the deputy public prosecutor said no parties have voiced objections or sought a claim to it in today’s proceedings,” MACC said in a statement today.

Through the order, MACC said the monies parked under a company’s name called Derivale Limited, owned by Azlin Alias as its beneficiary, would be forfeited to the Malaysian government through the anti-graft agency.

“This seizure is made under Section 56 of the Malaysian Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amlatfpuaa 2001).

“And this is also MACC’s first victory in seizing an asset kept in a foreign country without having to conduct a prosecution,” it added.

In 2016, then-finance minister II Johari Abdul Ghani said Finance Ministry-owned SRC International's invested money was stuck in BSI Bank as the Swiss bank was under investigation linked to 1MDB.

"Most of their (SRC) money that has been invested, they parked it under BSI Bank.

"Because BSI bank is under investigation, I was told by the management of SRC that the money is in BSI bank, but it was frozen and therefore they cannot take back the money,” he was reported as saying.

Najib’s testimony

In December last year, former prime minister Najib Abdul Razak refuted former 1MDB CEO Hazem Abdul Rahman's testimony in court that the Malaysian sovereign wealth fund was established to funnel money to Umno-linked firms.

"I strongly disagree with the assertion (by Hazem). 1MDB or its project ventures were neither for my benefit nor Umno’s,” the former prime minister testified during the RM2.27 billion 1MDB abuse of power and money laundering trial against him before the Kuala Lumpur High Court.

"The approvals given to the company were pursuant to the proposals made by the company itself after a thorough deliberation at the board level on proposals brought to them by legitimate entities,” he added.

The entities included Aabar Investments PJS and International Petroleum Investment Company, upon the advice of advisers of such calibre as (United States-based investment bank) Goldman Sachs, (financial adviser) Lazard, (Swiss-based) BSI Bank and the (London-based adviser group) Baker & McKenzie group.

Najib is serving a six-year jail sentence over a separate abuse of power case involving RM42 million of funds from SRC International, a former subsidiary of 1MDB.

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