KUALA LUMPUR (May 5): 1Malaysia Development Bhd (1MDB) and its four subsidiaries are seeking leave (permission) from the High Court to initiate a US$2.18 billion (RM9.68 billion) claim against fugitive businessman Low Taek Jho's (Jho Low) accomplice Eric Tan Kim Loong, who has been declared a bankrupt for non-payment of RM68 million in income taxes.
This comes after 1MDB previously took action against Jho Low and his father Tan Sri Larry Low Hock Peng, for them to be sentenced to jail in absentia for contempt for not abiding with the Mareva injunction imposed on them in April last year — to freeze US$1.03 billion of Jho Low’s assets and another US$401.5 million of Hock Peng’s assets, which are said to be related to 1MDB.
Tan, meanwhile, was declared a bankrupt in June last year, after he failed to settle the RM68 million taxes he owed to the Malaysian government between 2010 and 2013.
He is said to have owed RM2.706 million in 2010, RM22.09 million in 2011, RM35.479 million in 2012, and RM1.538 million in 2013.
Besides 1MDB, the other four subsidiaries are 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd, and Global Diversified Investment Company Ltd, which was formerly known as 1MDB Global Investments Ltd.
All in all, 1MDB is seeking a sum of US$2.18 billion from Tan, which he is jointly named in the claim by 1MDB and the four subsidiaries along with Jho Low, his mother Puan Sri Goh Gaik Ewe, brother Low Taek Szen, and Hock Peng.
As stipulated in 1MDB’s amended writ and statement of claim in February, 1MDB is seeking from Tan and Jho Low a sum of RM41 million, US$1.090 billion, and US$397.33 million.
The companies are also seeking a sum of another US$607.897 million from Tan, Jho Low and Hock Peng, US$1.695 million from Tan, Jho Low and Goh, US$2 million from Jho Low, Taek Szen, and Tan, and US$25.5 million from Jho Low, Hock Peng and Taek Szen.
For the sum, the companies are seeking the court’s declaration that they are the constructive trustee of the funds, that they pay the sum, or are jointly and severally liable to account for the funds, along with the secret profits they made, along with general, aggravated and punitive damages.
Under Section 8 of the Insolvency Act 1967, with regard to suing a bankrupt, the creditor can proceed or commence any action or other legal proceedings of such debt via leave from the court.
The case was called up for case management on Wednesday (May 3) before High Court senior assistant registrar Haslinda A Raof, who fixed June 6 as another case management date.
The Edge also confirmed the outcome on Wednesday with 1MDB counsel Siva Kumar Kanagasabai of Messrs Skrine.