Court Extends Petrosaudi International S Rm340m Ban For 3 Months

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The Kuala Lumpur High Court today allowed the government’s application to extend a prohibition preventing PetroSaudi International Ltd (PSI) and its director, Tarek Obaid, from dealing with US$340 million (RM1.61 billion) linked to 1MDB.
The funds, claimed by the government to be connected to the 1MDB scandal, are currently held in a client account of 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), which is a unit of PSI co-founded by Obaid.
High Court judge Noor Ruwena Nurdin granted the application filed by deputy public prosecutor Mahadi Abdul Jumaat through a notice dated Dec 5, thereby extending the prohibition period.
“I take into account the objection raised by the respondent (Obaid), as this matter has been ongoing for a long time. However, I also take into account the public interest. The court must strike a balance and allow some time for the prosecution to wrap up its case,” she said.
“The court grants an extension of three months from today,” the judge said, extending the prohibition until March 23, 2026.
The restraining order was initially granted by the High Court on Dec 11, 2024, and expired on Dec 10.
During today’s proceedings, deputy public prosecutor Mahadi Abdul Jumaat was assisted by deputy public prosecutors Nidzuwan Abd Latip and Nurul Izzati Sapifee.
Obaid was represented by lawyer Yusof Zainal Abiden, while lawyer Alex Tan appeared for PSI and PSOS-VZ. There was no representative for Clyde & Co.
In 2020, the court allowed the government’s application for an interim order to prevent the parties from transferring funds linked to 1MDB, directing that the money be kept in an escrow account held by the law firm.
The interim order was intended to preserve the status quo pending the disposal of the government’s application for an injunction to prohibit any dealings involving funds belonging to PSI and PSOS-VZ.
The Malaysian government claims the money that originated from 1MDB funds was invested 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 2024, international media reported that the Swiss Federal Criminal Court convicted Obaid of offences related to the embezzlement of US$1.8 billion from 1MDB and sentenced him to seven years’ imprisonment.
- Bernama

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