Court Allows 1MDB to Submit Affidavit in Mareva Injunction Case Against Rosmah

PUTRAJAYA: The Court of Appeal today allowed 1Malaysia Development Berhad (1MDB) and its related companies to submit an affidavit by a Singaporean woman in support of their application to freeze Datin Seri Rosmah Mansor’s assets in a lawsuit involving luxury goods worth more than US$346 million (RM1.41 billion).

A three-member panel of judges comprising Datuk Dr Alwi Abdul Wahab, Datuk Ismail Berahim and Datuk Leonard David Shim unanimously allowed 1MDB’s appeal, with costs of RM30,000.

“Having examined the appeal records, the High Court’s grounds of judgment, the memorandum of appeal and submissions from both parties, we unanimously find that the High Court judge applied the wrong principles in dismissing the appellants’ (1MDB) application for leave.

“Accordingly, the appeal is allowed and the High Court’s decision is set aside,” Shim said when delivering the court’s decision today.

The companies are seeking to freeze Rosmah’s assets over allegations that she acquired more than 12,000 luxury items, including jewellery, watches and handbags, using approximately US$346 million allegedly misappropriated from 1MDB.

Shim said the High Court had erred in finding that exceptional circumstances were required before the companies could be permitted to submit the affidavit.

He said there was no provision under the Rules of Court requiring applicants to establish exceptional circumstances when seeking an extension of time.

Shim said the court also found that the companies had filed their application on June 20 last year, before written submissions in the injunction proceedings were completed on July 18.

The delay of approximately two and a half months in preparing the affidavit had been satisfactorily explained.

The judge said Shabnam, who was initially named as the second defendant in the lawsuit, had only agreed to provide her evidence after the companies withdrew their claims against her through a consent order on April 9 last year.

“Her affidavit, comprising 319 pages across nine volumes, contains invoices, correspondence with luxury goods vendors, photographs and communications involving fugitive businessman Low Taek Jho, better known as Jho Low, and Eric Tan.

“These exhibits demonstrate the modus operandi of a large-scale global financial scheme facilitated by associates such as Jho Low and Eric Tan, who arranged payments through offshore entities using funds allegedly misappropriated from 1MDB.

“Allowing the affidavit would not cause substantial prejudice to Rosmah, as she would be given sufficient time to examine and respond to its contents,” he said, adding that the affidavit was relevant to the companies’ claims and their application for a Mareva injunction.

On November 10 last year, the Kuala Lumpur High Court refused to grant 1MDB and its related companies permission to rely on Shabnam’s affidavit in support of their application for a Mareva injunction, a court order to freeze Rosmah’s assets.

The plaintiffs had sought to submit the affidavit to strengthen their application for the Mareva injunction.

The lawsuit, filed on May 9, 2024, involves 1MDB and five of its subsidiaries — 1MDB Energy Holdings Limited, 1MDB Energy Limited, 1MDB Energy (Langat) Limited, Global Diversified Investment Company Limited and SRC International Sdn Bhd.

Five other companies involved are Affinity Equity International Partners Limited, Alsen Chance Holdings Limited, Blackrock Commodities (Global) Limited, Blackstone Asia Real Estate Partners Limited and Brightstone Jewellery Limited.

They are seeking a court order requiring Rosmah to pay US$346,010,489 or any other amount deemed appropriate by the court.

They are also seeking a declaration that the first to sixth plaintiffs hold legal ownership rights over the luxury goods allegedly in Rosmah’s possession.

The lawsuit initially named Rosmah and Shabnam as the first and second defendants, respectively.

However, in April last year, 1MDB and the other companies withdrew their lawsuit against Shabnam.

Earlier, the High Court scheduled January 7 next year to hear the Mareva injunction application.

BERNAMA