KUALA LUMPUR (June 22): The High Court was informed by the prosecution on Thursday (June 22) that there is no settlement between the Malaysian Government, and Saudi national Tarek Obaid, PetroSaudi International, and PetroSaudi Oil Services (Venezuela) Ltd (PSOSL), over a US$340 million forfeiture application.
Deputy Public Prosecutor (DPP) Ahmad Faris Ab Jalil told judge Datuk Ahmad Shahrir Mohd Salleh that the next hearing date on Aug 28 this year is to be maintained.
This led Ahmad Shahrir to ask Ahmad Faris what was the outcome of the proposed settlement, and the DPP replied that it remains status quo as there is no settlement.
Alex Tan, who appeared for PetroSaudi and PSOSL, and counsel Datuk Yusof Zainal Abiden who mentioned on behalf of Tarek, concurred but indicated that it would be up to the prosecution.
Following this, Ahmad Shahrir asked as to how many days are needed for the continued submissions, and both replied possibly one day.
Hence, the judge fixed Aug 28 for continued submissions.
The parties had since last year been disputing about the forfeiture, with Tarek, PetroSaudi International, and PSOSL arguing that the forfeiture or a prohibitory order sought by the prosecution from accessing the funds placed in an escrow account was not in order. It was adjourned several times for discussion on a possible settlement.
The court had previously asked the prosecution whether they wanted to amend the application over its prohibitory order, following similar claims made by the United States government.
The prosecution is alleging that the said funds are from 1Malaysia Development Bhd (1MDB), following its joint venture with PetroSaudi International during former prime minister Datuk Seri Najib Razak’s time, and had sought to recover it.
The forfeiture against Tarek, along with PetroSaudi International, PSOSL, Clyde & Co, and Temple Fiduciary Services Ltd, is the first forfeiture application conducted by the Malaysian Government through the Malaysian Anti Corruption Commission (MACC) overseas.
Clyde & Co and Temple Fiduciary are not represented in the proceedings.
The forfeiture application was filed on July 10, 2020, where it is claimed that a sum of US$300 million was transferred from 1MDB to PetroSaudi International to form a joint venture company, 1MDB PetroSaudi Ltd.
The Malaysian Government claimed that this fund was supposed to be utilised for the Turkmenistan and Argentina energy ventures, but it was rerouted within PetroSaudi entities to establish drilling operations in Venezuela, specifically for PSOSL.