Us 185m 1mdb Funds Laundered On Oil Venture In Venezuela Prosecution

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Part of the US$340 million of 1MDB’s monies were funnelled into an oil drilling and exploration venture between an entity linked to Petrosaudi International Limited (PSI) and the Venezuelan government, the Kuala Lumpur High Court heard today.
Deputy public prosecutor Norinna Bahadun made this oral submission during the hearing of the government’s legal action to prohibit PSI and several others from utilising the funds believed to be in an account managed by the United Kingdom (UK) based law firm, Clyde & Co LLP.
The prohibitory order legal bid targets PSI, its director Tarek Obaid (above), Petrosaudi Oil Services (Venezuela) Limited (Incorporated in Barbados), also known as PSOSL, Clyde & Co, and UK-based Temple Fiduciary Services Limited. PSOSL is a subsidiary of PSI.
The DPP contended that as part of the money laundering scheme that funnelled millions of US dollars out of the Malaysian wealth sovereign fund beginning 2009, she pointed out that around US$185 million of this portion ended up being used by PSOSL for its oil venture with Venezuela in 2010.
Previously, the prosecution claimed that the money laundering began when US$700 million of US$1 billion meant for a joint venture between 1MDB and PSI had ended up instead in the account of Seychelles-incorporated Good Star Limited.
Former prime minister Najib Abdul RazakGood Star is alleged to be linked to fugitive businessperson Low Taek Jho (Jho Low), whom the prosecution contended had arranged the embezzlement of funds out of 1MDB with the authority of former prime minister Najib Abdul Razak.
These contentions were raised by the prosecution during the separate, ongoing criminal corruption trial against Najib involving RM2.28 billion of funds from 1MDB.
Norinna further argued that US$185 million of 1MDB’s funds ended up with PSOSL, which used part of it to buy the Discoverer drilling ship as part of the oil venture with Petroleos de Venezuela SA (PDVSA), which is Venezuela’s national oil company.
“We have seen in the consideration of PDVSA in their minutes, we have seen this in the drilling contract proper, we have seen this in the product placement memorandum in seeking funds for bonds, and we have seen this in the global bond agreement itself. and we know the origin of the PSOSL monies. The origin is 1MDB funds.
“1MDB has been washed away, kicked to the curb so far as PSI Group is concerned,” claimed Norinna.
Proceedings before judicial commissioner Ahmad Shahrir Mohd Salleh resumes this afternoon.
Counsel Mohd Yusof Zainal Abiden represented Saudi national Tarek, while Alex Tan appeared for PSI, PSOSL, and Temple Fiduciary Services. Clyde & Co was unrepresented.
Counsel Mohd Yusof Zainal AbidenJoint venture
In its legal action filed on July 14, 2020, the Malaysian government claimed that the amount totalling US$340,258,246,87 at Clyde & Co, was derived from money laundering.
The legal bid was filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
According to the US Department of Justice, the joint venture was alleged to have been a front to siphon off 1MDB funds.
Najib is currently serving a 12-year jail sentence following the apex court on Aug 23 upholding his conviction and custodial sentence as well as an RM210 million fine in the separate RM42 million SRC International corruption case.
Initially a subsidiary of 1MDB, SRC was later fully transferred to the Minister of Finance Incorporated (MOF Inc).
Najib also used to be finance minister, adviser emeritus of SRC and chairperson of 1MDB’s board of advisers. - Mkini

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