Loan Financed The Movies Not 1mdb Money Says Riza Aziz

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Riza Aziz said that after signing an agreement with Alsen Chance Holdings Ltd, a company owned by the Saudi Arabian royal family, he received monies amounting to US$1,173,104 and US$9,000,000.KUALA LUMPUR: Hollywood producer Riza Aziz and his two companies are claiming that they obtained a loan to produce several films in the US and did not receive any funds from 1Malaysia Development Bhd (1MDB).
They said the loan came from the Saudi royal family or the International Petroleum Investment Company (IPIC).
IPIC is a company founded in Abu Dhabi whose managing director at the time was Khadem Abdullah Al-Qubaisi, a former aide to Sheikh Mansour Zayed Al Nahyan, the Deputy Prime Minister of the United Arab Emirates and also a member of the royal family.
This was revealed in the defence statement filed by Riza, Red Granite Pictures Inc and Red Granite Capital Ltd, as defendants, through Messrs Scivetti & Associates on Oct 25.
Based on the defence statement, Riza, the man behind the movie The Wolf of Wall Street, claimed that it was difficult for an unknown film producer to obtain loans from banks, which was why he decided to do so from individuals or companies.
Riza also claimed that he was then introduced to Prince Saud Abdulaziz Majed Abdulaziz Al Saud (Prince Saud) and Prince Faisal Turki Abdullah Abdulaziz Al Saud (Prince Faisal) from the Saudi royal family, who showed interest in lending him money for producing films under Red Granite Pictures.
“I was informed that representatives of the Saudi royal family agreed to provide the loan.
“The loan would be disbursed by a company known as Alsen Chance Holdings Ltd, which is a company beneficially owned by the Saudi Arabian royal family. In this regard, I entered a loan agreement with Alsen Chance,” he said.
Riza claimed that, after signing the agreement, he received monies amounting to US$1,173,104 (RM4.8 million) and US$9,000,000 (RM37.35 million).
The money was utilised to finance two companies, including the setting up and operating a production house, buying rights of scripts, books and producing films.
The stepson of former prime minister Najib Razak, also claimed that he had discharged his obligation under the Alsen Chance loan agreement by Oct 31, 2021, whereby he had repaid Alsen Chance in full, together with interest.
“At that time, Alsen Chance had no nexus or connection with the plaintiffs (1MDB, 1MDB Energy Holdings Ltd, 1MDB Energy Ltd and 1MDB Energy (Langat) Ltd) and as such, there was no reason for the defendants to suspect the source of the funds,” Riza claimed.
On the transfer of US$238 million to Red Granite Capital, Riza claimed the money was used to finance the business of the two companies, including the operational cost of a production house, buying rights of scripts, books and producing films.
Meanwhile, lawyer Hariharan Tara Singh, who is representing Riza and his two companies, said the High Court has set Dec 6 for case management.
He said all the defendants had filed statements of defence.
1MDB and its three subsidiaries, namely, 1MDB Energy Holdings Ltd, 1MDB Energy Ltd and 1MDB Energy (Langat) Ltd as the plaintiffs, filed the writ of summons on May 7 through Messrs Shearn Delamore & Co, naming Riza, Red Granite Pictures and Red Granite Capital, as the first, second and third defendants respectively.
The companies also named New York-based law firm, Shearman and Sterling, as the fourth defendant.
The companies, in their writ of summons, said that in 2011 and 2012, Riza and the two defendants received approximately US$250 million in funds from 1MDB and its three subsidiaries, which were allegedly misappropriated for their personal benefit and for the benefit of their associates, including for financing movie productions and purchasing various real estate.
The companies claimed that Riza, who controlled the two Red Granite companies, ought to have known that the money that originated from 1MDB was misappropriated to them for their benefit.
The plaintiffs are seeking a declaration that Riza is liable to account for the misappropriated funds and unjust use of the funds, and are also seeking the repayment of the misappropriated funds. - FMT

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