KUALA LUMPUR: The High Court here today allowed 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 1Malaysia Development Berhad (1MDB).
The monies, allegedly linked to the multimillion-dollar sovereign wealth fund scandal, are currently held in a client account at Clyde & Co LLP in the United Kingdom on behalf of PetroSaudi Oil Services (Venezuela) (PSOS-VZ).
PSOS-VZ is a subsidiary of PetroSaudi Oil Services Ltd (PSOSL). PSOSL is a unit of PSI, co-founded by Obaid.
Justice Datuk Ahmad Shahrir Mohd Salleh granted the prohibition order after the public prosecutor successfully demonstrated, through an affidavit, that the sum of US$340 million is either the subject matter or evidence of a money-laundering offence under Subsection 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA).
“In perusing the application, affidavits and considering the submission of the learned deputy public prosecutor and the learned counsel, this court is satisfied that sufficient evidence has been presented in accordance with Subsection 53(2)(a) of the AMLATFPUAA.
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“Subsection 53(2)(a) of the act stated that so long as the evidence is produced to demonstrate the satisfaction of any one of the categories, it is mandatory for this court to make the order prohibiting the person but by whom the property is held, or with whom it is deposited, from dealing with it,“ said Justice Ahmad Shahrir in his brief grounds.
At today’s proceeding, deputy public prosecutor Norinna Bahadun appeared for the prosecution, while Obaid is represented by counsel Datuk Mohd Yusof Zainal Abiden and counsel Alex Tan is acting for PSI, PSOS-VZ and Temple Fiduciary Services Ltd. Clyde & Co is not represented.
In 2020, the court granted the government’s application for an interim order to block the parties from moving the monies 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 monies belonging to PSI and PSOS-VZ.
The Malaysian government claimed that the money involved came from 1MDB funds 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, the international media reported that the Swiss Federal Criminal Court convicted Obaid over embezzlement of US$1.8 billion from 1MDB and he was sentenced to seven years imprisonment.
