KUALA LUMPUR (Aug 21): 1Malaysia Development Bhd and its four subsidiaries want the High Court to uphold its ex-parte Mareva injunction (asset freezing order) in relation to US$681 million on Datuk Seri Najib Razak, as they felt that the former prime minister did not take his asset disclosure as seriously as requested by the court.

1MDB’s lawyers also suggested the possibility of Najib holding more bank accounts locally and abroad which he had not disclosed in his affidavit declaring his assets to the court.

1MDB lead counsel Khoo Guan Huat, who appeared with Kumar Kanagasabai, said in the affidavit he affirmed on March 14, 2022, Najib had used the Bahasa Malaysia plural terms to denote accounts (ie akaun-akaun) and banks (bank-bank).

“(In his affirmed affidavit) Najib did not show that he has nothing outside this jurisdiction. The first disclosure of assets did not disclose any cash essence.

“It also did not disclose the purported RM114 million that was seized by the police during the May 2018 raid said to be Umno funds given back to him in the failed forfeiture, or the RM31 million in cash and valuables that were returned in the second forfeiture,” he added.

Khoo said that Najib only disclosed in his affidavit dated June 30, 2023 three new assets, namely his Affin Bank account in which he has RM1.2 million, an Amanah Saham Nasional account of RM2.5 million and a Range Rover gifted to him.

Previously, Najib said the delay in disclosing additional assets was due to his accountant not having the relevant information.

Khoo said 1MDB is seeking the enforcement of the Mareva injunction to prevent a further dissipation of funds which may be held by Najib.

“The disclosure in June this year only refers to one bank account, namely Affin Bank, but in his earlier affidavit, he affirmed accounts and banks. This refers to the possibility of him having his assets in more than one bank account or banks,” he added.

Khoo also raised 1MDB’s suspicion over the RM114 million that was returned to Najib following the failed forfeiture as there is no record of Umno receiving the money.

He said Najib authorised one Datuk Akbar Abdul Gafoor, a person working with the solicitors of Umno, Messrs Scivetti & Co to take the RM114 million.

“However, the firm Scivetti also acts for Najib in his criminal case. In the forfeiture hearing with regards to the RM114 million, we have current president Datuk Seri Ahmad Zahid Hamidi and then treasurer Datuk Seri Tengku Adnan Tengku Mansor initially affirming the money does not belong to the party,” he said.

Khoo further asked why the money was not returned to Ahmad Zahid, but to Najib, who had stepped down as Umno president and Barisan Nasional chairman in May 2018, if the funds indeed belonged to the party.

Out of the RM114 million, he added that RM62 million were denominated in foreign currencies.

“This again shows Najib’s lack of probity and seriousness in his asset disclosure in court. When the money was returned, he was no longer the Umno president and therefore, he could not have held it in trust as president of Umno,” Khoo added.

“There is no evidence from the first defendant (Najib), whether he paid Umno back to whoever was the trustee of Umno funds.”

Khoo added that 1MDB and its subsidiaries had proven the danger of dissipation of the funds.

“We have shown the documentary trail to show how the money had gone to the defendant’s accounts. The fact he received the money is not disputed and a lot of our application is predicated in the judgment obtained in the SRC International Sdn Bhd trial,” he said.

In the SRC International trial, the court had dismissed Najib’s defence that the monies he received were Arab donations.

The 1MDB money was returned to Najib sometime in mid-2021, after the High Court dismissed its forfeiture and ruled the money belonged to Umno. The prosecution did not appeal the verdict.

The injunction was imposed on Najib on Feb 8, 2022, and he is now is trying to set it aside.

Najib is currently serving 12 years in jail and RM210 million fine after being found guilty on August 23, last year with regards to all seven counts of SRC International charges.

Muhammad Farhan Shafee, who appeared for Najib, replied that his client could be held liable to some RM10 billion to RM44 billion with regards to the ongoing criminal case and pointed that it is unlikely 1MDB is able to recover the money from the defendant.

“The actual prospect of recovery to this is only a paper judgment,” he said.

Farhan also pointed out that there is another RM42 million Mareva injunction imposed on Najib, thus it was unnecessary to impose this additional one.

Moreover, except for Amanah Saham Nasional, Najib only has one other bank account, which is with Affin Bank.

It is where he receives his salary and pensions, said Farhan.

The lawyer acknowledged that Najib had held accounts with AmBank, but these accounts were already closed.

He further questioned why the Mareva injunction was imposed on Najib alone, when there were other defendants, including former board of directors and former 1MDB officers who were also named in the suit and should be held liable.

“This is inappropriate behaviour of the plaintiff (1MDB and its subsidiaries),” he added.

Farhan also denied the suppression of the former prime minister’s assets, saying the incomplete disclosure last year was due to lack of time in replying to the court within 21 days.

He maintained that the RM114 million were funds held in trust by Najib for Umno for the 14th general election and showed his police report on the matter, although he had claimed that it was RM160 million and not RM114 million.

“Furthermore, Ahmad Zahid and Ku Nan did affirm an affidavit later that the money belonged to Umno,” Farhan added.

He also said Najib’s two bank accounts were already disclosed in the SRC Mareva injunction, adding that it was far-fetched for 1MDB to suggest intentional suppression of disclosure.

“There is no element of suppression of late disclosure,” Farhan said.

Judge Atan Mustaffa Yussof Ahmad said he would deliver his decision on Najib’s application to set aside the Mareva injunction on Sept 27.

1MDB had filed the US$8 billion suit in May 2021, along with 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd and Global Diversified Investment Company Ltd (previously known as 1MDB Global Investment Ltd), against Najib and seven other former senior 1MDB staff, several of which are still missing.

Those named include 1MDB deputy chief financial officer and executive finance director Terence Geh Choh Heng, former general counsel Jasmine Loo Ai Swan, executive director of business development Casey Tang Keng Chee, former director of investments and chief investment officer Vincent Beng Huat Koh, former chief financial officer and subsequently chief operating officer Radhi Mohamad, former director of investments Kelvin Tan Kay Jim and former chief investment officer Nik Faisal Ariff Kamil.

In the statement of claim, the plaintiffs 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.

Last month, it was reported that Atan has fixed 12 days beginning Jan 2025, as trial dates for the suit.

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