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KUALA LUMPUR (May 26): 1Malaysia Development Bhd (1MDB) chairman Datuk Johan Mahmood has alleged that former prime minister Datuk Seri Najib Razak made only partial disclosure of his assets with regards to a Mareva injunction (asset-freezing order) imposed by the High Court on the former prime minister in February last year.
Johan, in an affidavit filed on Thursday (May 25) and sighted by The Edge following a file search, alleged that Najib had only disclosed his assets from 2011 to 2020, and there was no information made on his assets from 2021 until March 14, 2023.
“DSNR (Najib) did not disclose assets held in his bank accounts. Najib also did not disclose his assets out of jurisdiction (as required),” Johan said.
Johan was referring to Najib’s affidavit dated March 14 last year, over the court’s Mareva injunction order requiring the former premier to disclose his assets.
He said 1MDB discovered that Najib owned an Affin Bank Bhd account which was not disclosed in the former premier’s affidavit to 1MDB.
In addition, the 1MDB chairman noted that following Najib’s success in setting aside the RM114 million and RM31 million forfeiture last year, this was also not reflected in Najib’s affidavit.
Johan alleged that there were also differences in disclosure by Najib, over the Mareva injunction in the SRC International Sdn Bhd suit where the former subsidiary obtained a freezing order of RM42 million of the former premier’s assets.
In Najib’s affidavit over the Mareva injunction, the former premier listed his assets as worth RM4.49 million.
Funds and valuables returned from Pavilion condo raid
Johan noted that 1MDB had on March 31 this year requested such information to be provided by Najib’s solicitors but there had been no reply.
In August 2021, the High Court found that the prosecution had failed in its forfeiture of RM114 million in cash of various denominations seized from the Pavilion condo raid in May 2018, and ordered a return of the amount to Najib and then to Umno, where he was the former party president.
In November last year, the High Court also dismissed a forfeiture of assets retrieved from the Pavilion condo raid worth RM80 million and those items were eventually returned to Najib and his wife Datin Seri Rosmah Mansor, after no appeal was found.
Johan claimed that out of the RM80 million, an amount in excess of RM31 million belonged to Najib.
Najib’s counsel Tan Sri Muhammad Shafee Abdullah told High Court judge Atan Mustaffa Yussof Ahmad on Friday that since an affidavit was affirmed by the 1MDB chairman, it had to reply to those points made.
Friday was supposed to be the hearing of Najib’s application to set aside 1MDB’s and its four subsidiaries’ Mareva injunction.
Atan Mustaffa was informed that 1MDB’s subsidiary, 1MDB Global Investment Ltd (1MDBGIL), has been struck off the British Virgin Islands (BVI) Registry of companies.
Despite this, 1MDB, along with 1MDBGIL (now known as Global Diversified Investment Co Ltd) and three other 1MDB subsidiaries, are continuing with the suit and objecting to the setting aside of the Mareva injunction.
1MDB counsel Khoo Guan Huat — who appeared with Siva Kumar Kanagasabai, Foo Siew Li, Dhanyaa Shreeya, Tommy Lim Ka Hui and Pang Huey Lynn — said despite 1MDBGIL being struck off, 1MDB managed to get an affidavit affirmed by a BVI lawyer that it may continue to pursue any proceedings instituted on its behalf prior to the striking off, including to proceedings before courts abroad.
Khoo maintains that the proceeding can proceed despite 1MDBGIL having been struck off by the BVI registry.
Shafee told the court that he sought an adjournment to Friday’s hearing to set aside the Mareva injunction and also to reply to the affidavit on 1MDBGIL’s latest development.
Khoo indicated that he has no objection to Najib’s counsel seeking an adjournment.
Atan Mustaffa said in the interest of justice, Najib should be allowed to reply to the affidavit by the 1MDB chairman.
“This is to ensure that the court has all materials before it, as this relates to the risk of dissipation of funds, which is the heart of the Mareva injunction application,” the judge said.
Hearing for Najib to set aside Mareva now on July 14
Following this, Atan Mustaffa instructed Shafee, who appeared with Muhammad Farhan Shafee and Alaistair Brandah Norman, to have Najib’s affidavit in reply filed by July 10.
The judge fixed July 14 for the hearing of Najib’s application to set aside the Mareva injunction.
Najib is presently serving his 12 years’ jail and a RM210 million fine at the Kajang prison, after he has exhausted his appeal and the guilty verdict was upheld with regards to his SRC International Sdn Bhd case.
On Feb 8 last year, Atan Mustaffa granted 1MDB and its four subsidiaries an ex-parte (for one party) Mareva injunction against Najib to freeze his assets in relation to the company’s claim of US$681 million against the former PM and finance minister.
The Mareva injunction against Najib allows him to withdraw up to RM100,000 monthly from his bank accounts.
1MDB, along with 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd, 1MDBGIL, and 1MDB Energy Holdings Ltd, had filed an US$8 billion suit, wherein besides naming Najib, it had named 14 other former directors and 1MDB former office bearers in the suit.
The suit
In its statement of claim filed in May 2021, it alleged that the defendants, including Najib as the former chairman of the board of advisers, had facilitated the companies to enter into sham agreements to create a circuitous trail of money to ease or conceal the misappropriation of 1MDB funds.
The companies further contended that Najib disregarded his obligations under Article 117 of the Memorandum of Articles of Association and abused his powers in exercising his public functions to maliciously commit fraud and misappropriation, resulting in the fraudulent transfer of funds and losses to them.
They contended that Najib should have foreseen the losses incurred due to such acts of misappropriation during each of the phases — losses that every Malaysian now has to bear.
They also claimed that Najib had abused his position in causing further losses and therefore, they are entitled to aggravated and exemplary damages because of his actions in obstructing and hindering investigations into the wrongdoing, whereby he obtained secret profits for himself or his agents.
They further alleged that Najib had taken advantage of his position and power to influence, facilitate and cause fraud, so that the management complied with his stated intentions that ran contrary to 1MDB’s corporate objectives, national interests, and the interests of Minister of Finance Inc — to benefit his stepson Riza Aziz, businessman Low Taek Jho (Jho Low) and others.