1MDB, directors join Najib to strike out Ezam’s suit

1MDB, directors join Najib to strike out Ezam’s suit

The prime minister, the state investment arm and 13 incumbent and former directors file applications in an attempt to cancel the suit for breach of fiduiciary duty.

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KUALA LUMPUR: 1MDB and current and former directors of the state investment arm have joined Najib Razak in seeking to strike out a suit by former senator Mohd Ezam Mohd Noor aiming to recover US$3.6 billion.

Lawyer Farez Jinnah, who is acting for Ezam , said 1MDB and 13 individuals filed their striking out applications and a stay of proceedings today pending the outcome to revoke the suit.

The application is intended to stop the court from hearing the suit.

Farez said Justice Nik Hasmat Nik Mohamad fixed another case management on Oct 9 for parties to file their affidavits.

“On that day, the court will fix timelines for submissions and hearing dates for both applications by the defendants,” he told reporters after proceedings in chambers.

Najib had filed a similar application to strike out the suit last month, saying Ezam had no legal standing and that the prime minister had been wrongly made a party to the action.

On April 14, Ezam, a former Umno and PKR leader named Najib and the current and former 1MDB directors in his court action, demanding that they return at least US$3.657 billion (RM16.14 billion) to the sovereign fund.

Ezam claimed that the money borrowed by 1MDB was lost due to breach of fiduciary duty by these individuals.

He said the directors, who held their posts between 2009 and last year, were named as defendants because they lost the money and did not take steps to recover it.

He said since Najib was also the finance minister, the government would not take any legal action to recover the money.

The directors named are Mohd Irwan Serigar Abdullah, Kamal Mohd Ali, Norazman Ayob, Che Lodin Wok Kamaruddin, Ismee Ismail, Ong Gim Huat, Shahrol Azral Ibrahim Halmi, Ashvin Jethanand Valiram, Arul Kanda Kandasamy, Mohd Hazem Abd Rahman@Mohamed, Mohd Bakke Salleh, Azlan Mohd Zainol and Tengku Rahimah Puteri Mahmud Shah.

Also named as party to the suit are 1MDB and the Malaysian government.

In his statement of claim, Ezam said between 2009 and 2011, eight directors transferred US$1.03 billion to Good Star Limited (GSL) for use in a joint venture with PetroSaudi International Ltd (PSI).

He said in 2012, they transferred US$1.367 billion to Aabar Investment PJS Ltd, a company incorporated in the British Virgin Islands (Aabar BVI).

The company has an almost identical name to Aabar Investment PJS, a subsidiary of International Petroleum Investment Company (IPIC), which was to be paid the money.

Ezam said in 2013, seven directors paid US$1.26 billion to Tanore Finance Corporation (TFC) for a joint venture with Aabar to establish Abu Dhabi Malaysia Investment Company Ltd (ADMIC).

He said 1MDB and the government had, as a result, suffered losses and damages.

Ezam said he was filing the suit in his capacity as a citizen and taxpayer as he would be burdened to repay the loans taken by 1MDB.

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