Uk Law Firm Gets 2 More Weeks To Reply To 1mdb Linked Us 340m Suit

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United Kingdom-based law firm was given another two weeks to respond to the Malaysian government's 1MDB-linked US$340 million (RM1.4 billion) lawsuit.
Judge Ahmad Shahrir Mohd Salleh allowed this application by the prosecution during today’s open-court proceedings on the suit at the Kuala Lumpur High Court.
As a result, the scheduled hearing of the suit was vacated and a case management fixed on Oct 22, to give opportunity to the UK-based legal firm to respond to the suit by the Malaysian government against it and four other respondents.
The other four respondents are Petrosaudi International Limited (PSI), Petrosaudi International's director Tarek Obaid, PetroSaudi Oil Services (Venezuela) Limited (POSL), and Temple Fiduciary Services Limited (TFSL).
Via the lawsuit, the Malaysian government is seeking a prohibitory order over the 1MDB-linked funds being held in trust by Clyde & Co in the UK.
Cause papers
Previously on Sept 6, Ahmad Shahrir had ordered the initially scheduled hearing that day to be vacated, when informed by prosecution that the suit’s cause papers were yet to be served on PSI, Clyde & Co, and TFSL.
The judge had ordered the prosecution then to serve the cause papers on the three respondents.
During proceedings at the Kuala Lumpur High Court this morning, deputy public prosecutor Budiman Lutfi Mohamed confirmed that the cause papers had been served on PSI, Clyde & Co, and TFSL.
Budiman Lutfi said they were informed seven days ago by the UK’s National Crime Agency (NCA) that it (NCA) has helped serve the Malaysian government’s cause papers on Clyde & Co.
“As of this morning, we did not receive communication from Clyde & Co, so we take it that all cause papers have been served,” the DPP said.
Two legal questions
However, Ahmad Shahrir then indicated that part of the cause papers served on the UK law firm were two legal questions.
The first question was whether Clyde & Co wished to respond to an affidavit by the Malaysian government, and secondly, whether in the event that the UK-based law firm does not wish to do so, whether this meant that it admits to the plaintiff’s (Malaysian government’s) averment in the suit.
Ahmad Shahrir then referred the prosecution to the second legal question and indicated it is important to ascertain this part from Clyde & Co.
“So far, we have not received anything in writing from Clyde & Co.
“In the interest of natural justice, perhaps we should allow Clyde & Co some time to respond in writing to confirm if they will and wish to file an application (respond to the suit).
“On the PP’s (public prosecutor) part, we undertake to communicate with the NCA soonest possible to pose this (two legal questions) to Clyde & Co,” Budiman Lutfi said.
Seeking to recover US$340m
When Ahmad Shahrir asked lawyers for the other respondents, Yusof Zainal Abiden and Alex Tan said they have no objections to the matter.
Yusof is acting for Tarek Obaid, while Tan represents POSL.
The judge then vacated today’s hearing and the scheduled hearing date on Oct 15, and fixed Oct 22 for case management to update the court on whether Clyde & Co has responded.
The government filed the suit on July 10 as part of efforts to recover the US$340 million, which allegedly originated from 1MDB.
In its legal action, the Malaysian government claimed that the amount totalling US$340,258,246,87 at Clyde & Co, owned by PSI and its subsidiary PSOL, was derived from money laundering.
The suit was filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
PSI was formerly a joint-venture partner of 1MDB.
According to the US Department of Justice, the joint venture was alleged to have been a front to siphon off 1MDB funds. - Mkini

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