Court allows AGC to serve papers to freeze use of 1MDB funds

Court allows AGC to serve papers to freeze use of 1MDB funds

The government wants a prohibition order against four entities and an individual from using US$340 million (RM1.4 billion).

The prosecution is seeking to restrain Petrosaudi International Limited and two others from using the funds kept in a UK law firm. (Reuters pic)
KUALA LUMPUR:
The High Court here allowed the prosecution to serve documents to Petrosaudi International Limited and two others in its application to restrain the use of US$340 million (RM1.4 billion) in alleged 1MDB funds kept in a UK law firm.

Judge Ahmad Shahrir Mohd Salleh asked the Attorney-General’s Chambers (AGC), represented by deputy public prosecutors Budiman Lutfi Mohamed, Norinna Bahadun and Sarah Khalilah Abdul Rahman, on whether they had served the court documents to Petrosaudi International Limited in Saudi Arabia as well as law firm Clyde & Co LLP and a company, Temple Fiduciary Services Limited.

The prosecution said they had yet to serve the papers and asked for an extension of time, which the judge allowed.

During the proceedings last year, only PetroSaudi International’s South American subsidiary company, PetroSaudi Oil Services (Venezuela) Ltd, and company director Tarek Obaid were represented by lawyers Mohd Yusof Zainal Abiden and Alex Tan, respectively.

Previously, another High Court judge, Mohd Nazlan Mohd Ghazali, granted a temporary order restraining PetroSaudi International and Tarek from using the US$340 million kept in Clyde & Co LLP.

The prosecution is contending that the funds belonging to PetroSaudi International and its subsidiary were gained through unlawful activities.

MACC investigating officer Mohd Afiq Abd Aziz, in his affidavit filed for the prohibition order application, said the money was related to a conspiracy involving Tarek, fugitive businessman Low Taek Jho and former prime minister Najib Razak to defraud 1MDB.

The US Department of Justice initiated forfeiture proceedings against Clyde & Co LLP last September to recover the US$340 million.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.