MALAYSIAN sovereign wealth fund 1Malaysia Development Bhd (1MDB) has initiated legal proceedings in the Malaysian civil court to reclaim US$1.83 bil from Petrosaudi International Ltd’s (PSI) chief investment officer Patrick Andrew March Mahony and the UK-based law firm White & Case LLP.
The lawsuit, filed on May 7, names Mahony and White & Case as the first and second defendants, respectively.
The statement of claim reviewed by Malaysiakini alleged that 1MDB was deceived into believing that PSI was owned by the late Saudi Arabian ruler King Abdullah. This purported misrepresentation led 1MDB to enter into a 2009 joint venture with PSI.
Besides, the plaintiff asserted that Mahony knowingly participated in a scheme to defraud the fund of substantial amounts of money.
1MDB is seeking an order for Mahony to return the US$1.83 bil invested in the joint venture.
Moreover, the plaintiff requested a declaration holding White & Case liable to account for the same sum as a constructive trustee for 1MDB based on alleged dishonest assistance.
When contacted, 1MDB’s counsel Kwan Will Sen confirmed that the civil action is scheduled for online case management before the Kuala Lumpur High Court tomorrow (May 24). Kwan added that 1MDB intends to serve the civil action’s cause papers to both defendants.
This legal action is part of a broader effort by 1MDB to recover funds. The fund has an ongoing civil case before the Kuala Lumpur High Court against former premier Datuk Seri Najib Razak.
Najib is implicated in the US$1.83 bil investment in the joint venture and is currently serving a six-year prison sentence for a separate criminal case involving RM42 mil from 1MDB’s former subsidiary, SRC International.
SRC later became fully owned by the Minister of Finance Incorporated (MOF Inc), which also owns 1MDB.
Furthermore, Najib is on trial for abuse of power and money laundering involving RM2.27 bil from 1MDB.
Meanwhile, Mahony and his alleged business partner Saudi-Swiss businessman Tarek Obaid are facing trial in the Swiss criminal court for the alleged embezzlement of US$1.8 bil from 1MDB. – May 23, 2024
