Why Did Anwar Withdraw Us 248m Suit Against Riza

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Yes, I know it was 1MDB which withdrew the civil suit of US$248 million (RM1.09 billion) against Najib Abdul Razak’s stepson Riza Aziz, but such an instruction could have only come from Finance Minister (and Prime Minister) Anwar Ibrahim.
This is because the memorandum and articles of association of 1MDB under Article 117 require that all major decisions at the so-called strategic development company must have the written approval of the prime minister.
Even if this clause no longer applies or has been changed, the only shareholder of 1MDB is the Minister of Finance Incorporated, a corporate body that operates under and reports to the finance minister.
That means such an important decision involving over RM1 billion must involve the finance minister, in this case, Anwar.
Anything less than the finance minister to decide this would be in breach of due process which surely could not have been done given all the problems of 1MDB in the past.
Where’s the corruption fight?
And crucially, what has happened to Anwar’s much-touted and publicised fight against corruption? Why stop 1MDB from recovering the money from Riza?
1MDB which has lost as much as RM50 billion to outright theft, bad deals and other means, withdrew the suit against Riza and his company, movie producer, Red Granite Pictures on Feb 24, The Edge reported. No reasons were given.
This is not the first time Riza has been let off the hook. In July 2019, he was charged with laundering US$248 million in 2011 and 2012.
But surprisingly, he was given a discharge not amounting to an acquittal (DNAA) in May 2020. The attorney-general then was Idrus Harun who had succeeded Tommy Thomas who resigned in February 2020 following the Sheraton Move which saw Muhyiddin Yassin succeeding Mahathir Mohamad as prime minister.
Thomas made no plea bargain
Tellingly, Thomas denied making any arrangement for a plea bargain with Riza, implying the deal was made after he left.
Then-lead deputy public prosecutor Gopal Sri Ram said an agreement was reached between the prosecution and the accused under which the federal government will receive “several million ringgit”.
Former attorney-general Tommy ThomasSeveral million ringgit? The money laundering was over RM1 billion. Riza was facing five charges under Section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.
Penalties can be as high as five times the amount laundered, in this case over RM5 billion and a prison sentence of not more than 15 years on each charge or 75 years on all charges.
You can read how Riza got a sweetheart deal through the DNA in my column at the time. I followed it up with a column on why that rotten deal should be investigated.
I said: “It is so bad that indications are that Riza does not have to take money out of his pocket but merely relinquishes any rights he may have to assets already seized by the US Department of Justice amounting to about US$108 million. This money would have to come to Malaysia anyway.
“It is rather questionable if Riza has any rights to the assets because they were bought with stolen 1MDB money, and the DOJ has the legal right to seize assets bought with such money.”
Effectively, a person who attempted to launder money was freed because he relinquished his claim to the laundered money. How ridiculous!
Following that rotten deal, all went quiet with no investigation, of course, until 1MDB decided to take matters into its own hands, following that inexplicably bad deal and DNAA with Riza.
On May 7, 2021, 1MDB and its subsidiaries filed a lawsuit against Riza and his two companies for purportedly receiving US$248 million in funds misappropriated from 1MDB, which they allegedly misused for personal gain including by financing film production and buying up various properties.
According to The Edge, 1MDB claimed that Riza had misappropriated their funds from fugitive businessperson Low Taek Jho (Jho Low), or was wilful and reckless in failing to make relevant inquiries as to the sources of the funds.
“1MDB said the first tranche of payment of more than US$10.173 million made to Riza was from Good Star Ltd, a company controlled by Jho Low, while that the US$238 million that Red Granite Capital received was actually from bonds raised by 1MDB for the purchase of several power plants.
“Riza, in his defence, claimed that the US$10 million was borrowed from the Saudi royal family, while the US$238 million was borrowed from Abu Dhabi-based International Petroleum Investment Company (IPIC). He also claimed to have paid the US$10 million back to the Saudi royal family,” The Edge said.
RM97 billion in suits
After nearly four years, and a DNAA the action against Riza ends with a whimper - a withdrawal of the civil action by 1MDB. One can suppose this will happen in other cases too. If you think this is not significant, consider this statement from the Finance Ministry in May 2021.
It states: “…on May 7, 2021, legal representatives for both entities (1MDB and SRC International Sdn bhd) had filed a combined total of 22 civil suits. Six of these writs were filed by 1MDB, while 16 were by SRC for the recovery of assets with a combined total in excess of RM96.6 billion (USD23 billion), including approximately RM300 million against various local parties.
That is RM97 billion, a staggering figure. But it's already reduced by RM1 billion with the withdrawal of the suit against Riza. How many others will be similarly withdrawn?
The Finance Ministry further said: “The writs filed by 1MDB are against a total of nine entities (including two foreign financial institutions) and 25 individuals for various wrongdoings including breach of contractual, statutory, common law and fiduciary duties; breach of trust; fraud; conspiracy to defraud; fraudulent misrepresentation; fraudulent breach of duties and trust; fraudulent concealment; fraudulent misappropriation; dishonest assistance in misappropriation of funds; negligence, knowing receipt and unjust enrichment.
“The writs filed by the SRC are against a total of 15 individuals and eight entities for various wrongdoings including abuse of power, breach of fiduciary duties in public office, breach of trust, conspiracy, dishonest assistance, fraudulent breach of duties, knowing receipt, misfeasance and wrongful conversion.
“1MDB and SRC contend that these entities and/or individuals have been unjustly enriched by wrongfully receiving monies from 1MDB or SRC.”
If 1MDB and SRC, both directly under Anwar as finance minister, were allowed to proceed with their action it would sound a major clarion call for battle against corruption, sending a chill through those who want to cheat and steal. But instead, he is withdrawing them with a whimper. How terribly sad!
Traipsing the globe
What about the fight against corruption? I suppose the PM will say he did not ask 1MDB to withdraw the case. But why did he allow it? How can he in any way stop 1MDB and SRC from recovering as much as RM97 billion and still say he wants to fight corruption?
If he can’t even allow his own finance ministry companies to sue to recover funds, what’s the hope for Malaysia? How many civil suits involving billions will he stop in future? Is this his latest move to condone corruption by aiding the withdrawal of civil suits to the DNAAs?
With all these issues continuing to face the country, he is more interested in traipsing the globe in a feeble attempt to bolster his international image.
Fighting corruption forcefully and meaningfully back home will do more for his prestige and reputation at home and abroad than all the trips he has made and will make overseas. - Mkini
P GUNASEGARAM says the Madani government of Anwar Ibrahim is sidelining important issues, no doubt about it.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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