KUALA LUMPUR (May 23): 1Malaysia Development Bhd (1MDB) has filed another lawsuit against PetroSaudi International Ltd (PSI) executive Patrick Mahony, this time seeking US$1.83 billion (RM8.9 billion) from the Swiss-British businessman for alleged dishonest assistance in the 1MDB scam.
In the suit filed on May 7 by 1MDB's solicitors, Messrs Lim Chee Wee Partnership, the strategic development firm is also seeking an additional US$33 million from PSI's chief investment officer for knowing receipt.
British law firm White & Case LLP was named as the other defendant in the suit, where 1MDB is seeking the same amounts from them on the same grounds.
Besides this, the Ministry of Finance Inc company is also seeking a court declaration that the defendants are liable as trustees to them over these specific sums.
1MDB's counsel Kwan Will Sen confirmed with The Edge that the matter is slated for case management on Friday.
Mahony's involvement is linked to a sham joint venture between 1MDB and PSI, which was guised to be associated to the government of Saudi Arabia and King Abdullah.
1MDB invested US$1 billion to secure a 40% stake in the joint venture while PSI was to “inject” dubious assets in exchange for the balance 60% stake. However, 1MDB had entered into an agreement with PetroSaudi Holdings (Cayman) Ltd instead. Mahony's business partner Tarek Obaid had executed the agreement on behalf of PetroSaudi Holdings (Cayman).
In total, 1MDB is said to have lost a total of US$1.83 billion in the so-called government-to-government joint venture.
In its statement of claim (SOC), 1MDB said that Mahony — alongside familiar 1MDB characters like former prime minister Datuk Seri Najib Razak, fugitive businessman Low Taek Jhow (Jho Low), and Obaid — had participated in and knew at all material times that the joint venture company between 1MDB and PetroSaudi Holdings (Cayman) was designed to misappropriate 1MDB funds.
They also added that White & Case represented PetroSaudi Holdings (Cayman) at all material times in relation to the joint venture.
In their 215-page SOC, the company also claims that the defendants, along with others, had conspired to injure 1MDB through unlawful means.
It was reported last month that both Mahony and Obaid were on trial in Switzerland's criminal court, where they have been accused of creating a sham oil exploration company through which they stole more than US$1.8 billion in 1MDB funds.
Swiss prosecutors have sought a 10-year sentence for Obaid and a nine-year jail term for Mahony.
In the local courts, 1MDB has filed a forfeiture action against Obaid, PSI, and others. The US$340.26 million action by the Malaysian Anti-Corruption Commission is said to be its first international forfeiture action.
1MDB has also filed a civil suit against Mahony, Obaid, PSI, and several other international banks for negligence, breach of contract, breach of fiduciary duties, conspiracy, and dishonest assistance.
Both of these matters are ongoing.