KUALA LUMPUR: The government has successfully prevented PetroSaudi International Ltd (PSI) and its director Tarek Obaid from accessing US$340 million (RM1.61 billion) tied to 1Malaysia Development Bhd (1MDB).
The funds were kept in a client account at a law firm in the United Kingdom.
Judge Datuk Ahmad Shahrir Mohd Salleh made the ruling after finding sufficient evidence to show that the funds were linked to money laundering activities.
"In producing the application, affidavits and considering the submission of the learned deputy public prosecutor and the learned counsel, this court is satisfied that sufficient evidence has been presented in accordance with Subsection 53(2)(a) of the AMLATFPUAA (Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001).
"Subsection 53(2)(a) of the act states that so long as evidence is produced to demonstrate the satisfaction of any one of the categories, it is mandatory for this court to make the order prohibiting the person but by whom the property is held, or with whom it is deposited, from dealing with it," he said in his brief grounds of judgment today.
Deputy public prosecutor Norinna Bahadun represented the prosecution, while former solicitor-general II Datuk Mohd Yusof Zainal Abiden represented Tarek Obaid, and Alex Tan represented PSI.
The US$340,258,246.87 is stashed in an account at UK-based law firm Clyde & Co LLP belonging to PSI and its subsidiary company PetrolSaudi Oil Services (Venezuela) Ltd.
On July 16, 2020, the court granted the government's application for a temporary order to prevent the parties involved from moving money linked to 1MDB and keeping it in an escrow account held by Clyde & Co.
The order was to maintain the status quo of the parties involved until the disposal of the government's application to obtain an order to prevent any dealings involving money belonging to PSI and its subsidiary PSOS-VZ which are currently in the account.
The government also sought to freeze an unspecified amount of money deposited in an intermediate account name of Temple Fiduciary Services at Barclays Bank.
The government claimed that the money involved came from 1MDB funds in a joint venture with PSI to establish 1MDB PetroSaudi Ltd in 2010.
The application names Obaid, PSI, PSOS-VZ, Clyde & Co and Temple Fiduciary as the first to fifth respondents.
MACC officer Mohd Afiq Ab Aziz, who was the investigating officer of the case, had said he believed that the monies in Clyde & Co LLP would be dispersed after a legal dispute between Petrosaudi Oil Services (Venezuela) Ltd and Venezuelan government-owned Petróleos de Venezuela.
Afiq in his affidavit said his investigation revealed that in Sept 2019, the law firm had entered into an agreement to use the money for the arbitration proceedings.