Court to hear applications by Najib, 15 others to annul Ezam’s 1MDB suit

Court to hear applications by Najib, 15 others to annul Ezam’s 1MDB suit

Justice Nik Hasmat Nik Mohamad fixes Nov 22 to hear oral submissions why the suit for breach of fiduciary duty by 14 individuals, the government and 1MDB must be struck out.

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KUALA LUMPUR: The High Court will hear on Nov 22 applications by Najib Razak, the government, 1MDB, and current and former directors of the state investment arm to strike out a suit by former senator Mohd Ezam Mohd Noor who is aiming to recover US$3.6 billion.

Lawyer Yazid Mustaqim Roslan, who appeared for Najib, said the date was fixed by justice Nik Hasmat Nik Mohamad during case management in chambers today.

“The judge also gave direction to all parties to file their submissions on or before the date of the hearing to strike out the suit,” he told reporters.

Najib had filed an application to annul the suit on July 12 , saying Ezam had no legal standing and that he (Najib) had been wrongly made a party to the action.

Last month, the government, 1MDB and 13 individuals filed their striking out applications and a stay of proceedings today pending the outcome to revoke the suit.

The applications are intended to stop the court from hearing the merit of the suit.

On April 14, Ezam, a former Umno and PKR leader, named Najib and 15 others 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.

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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