1MDB, SRC file 21 separate civil suits worth billions against banks, individuals for involvement in fraud

1MDB has filed a total of five separate suits on May 8 against the likes of Deutsche Bank, JPMorgan, Coutts & Co, as well as individuals including Datuk Seri Najib Razak (pic) and Tan Sri Mohd Irwan Serigar. — Picture by Shafwan Zaidon
1MDB has filed a total of five separate suits on May 8 against the likes of Deutsche Bank, JPMorgan, Coutts & Co, as well as individuals including Datuk Seri Najib Razak (pic) and Tan Sri Mohd Irwan Serigar. — Picture by Shafwan Zaidon

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KUALA LUMPUR, May 10 — Three law firms on Friday filed a total of 21 suits on behalf of 1Malaysia Development Bhd (1MDB) and its subsidiary SRC International Sdn Bhd against companies and individuals they have accused of being complicit in fraud against the duo.

In a report by The Edge, both 1MDB and SRC are seeking a total of US$23 billion (RM94.43 billion) and another RM300 million against those alleged domestic recipients of siphoned funds from both companies and its subsidiaries.

The firms of Rosli Dahlan Saravana Partnership (RDS), Skrine & Co, and Lim Chee Wee Partnership filed the suits last Friday in the High Court in Kuala Lumpur and the Sessions Court in Shah Alam.

According to The Edge, 1MDB has filed a total of five separate suits on May 8, including against foreign banks Deutsche Bank, JPMorgan and Coutts & Co as well as individuals including former prime minister Datuk Seri Najib Razak, former Treasury secretary-general Tan Sri Mohd Irwan Serigar.

Others named are former 1MDB office bearers like Tan Sri Che Lodin Wok Kamaruddin, and former chief executive officers (CEOs) of 1MDB Datuk Shahrol Azral Ibrahim Halmi, Arul Kanda Kandasamy and Mohd Hazem Abdul Rahman.

One of the suits also targeted fugitive businessman Low Taek Jho (Jho Low), his father Tan Sri Low Hock Peng, sister Low May Lin and accomplice Eric Tan Kim Loong from whom 1MDB is seeking a total of US$1.402 billion (RM5.76 billion).

For the companies, 1MDB filed suits regarding breach of contract, conspiracy to defraud the company and dishonest assistance to defraud the total amount of US$4.923 billion (RM20.22 billion).

The Edge reported that the first suit is filed by 1MDB with its subsidiaries — 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd and Global Diversified Investment Company Ltd, formerly known as 1MDB Global Investments Ltd, which is registered in the British Virgin Islands against Najib, the company’s former chairman Tan Sri Che Lodin Wok Kamaruddin and other former directors and officers.

1MDB seeks a quantum of US$7.795 billion (RM32.02 billion) for fraudulent misrepresentation, fraudulent breach of duties, fraudulent breach of trust, breach of statutory and contractual duties, conspiracy, negligence, knowing receipt, dishonest assistance, fraudulent misappropriation and unjust enrichment.

Arul and Irwan were named as defendants in the second suit for alleged breach of fiduciary duty, fraud, conspiracy, breach of trust and dishonest assistance.

The company sought US$6.59 billion (RM27.07 billion) as well as additional RM2.9 million against Irwan for llegedly committed fraudulent breach of duties and breach of trust towards International Petroleum Investment Corporation (IPIC) and Aabar PJS.

In another suit, 1MDB cites negligence breach of contract, conspiracy to defraud and dishonest assistance, where it is seeking US$1.11 billion from Deutsche Bank, US$1.03 billion from Coutts & Co plus interests, US$800 million from JP Morgan and interests on the sum, and US$1.83 billion from the two PetroSaudi companies and its co-founder Tarek Obaid plus interests and US$153 million from its director Patrick Mahony.

1MDB cites negligence breach of contract, conspiracy to defraud and dishonest assistance, where it is seeking US$1.11 billion (RM4.56 billion) from Deutsche Bank, US$1.03 billion (RM4.23 billion) from Coutts & Co plus interests, US$800 million (RM3.2 billion) from JP Morgan and interests on the sum, and US$1.83 billion(RM7.52 billion) from the two PetroSaudi companies and Tarek plus interests and US$153 million (RM628 million) from Mahony with the total sought to be US$4.923 billion (RM20.02 billon).

1MDB also filed claims against still missing Jho Low, his father Hock Peng, sister May Lin and his close associate Eric Tan for fraudulent concealment, fraudulent misappropriation of funds, unjust enrichment, breach of trust and conspiracy, where a total of US$1.402 billion (RM5.76 billion) are sought from them.

The company also took action against legal firm Wong & Partners, along with its senior partner Chia, for purported breach of contractual, statutory, common law and fiduciary duties, as well as dishonest assistance in misappropriation of funds. 1MDB is seeking US$1 billion (RM4.11 billion) and legal fees of RM664,821.21.

Najib is currently appealing for sentence after being found guilty by the Kuala Lumpur High Court in his SRC case for abuse of power, money laundering and criminal breach of trust.

The former prime minister was sentenced 12 years of jail time and a total of RM210 million in fines.

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