KUALA LUMPUR (Sept 26): Datin Seri Rosmah Mansor, who had earlier this month failed to recuse trial judge Adlin Abdul Majid from presiding in the 1Malaysia Development Bhd (1MDB) and SRC International Sdn Bhd’s US$346 billion (RM1.63 billion) suit against her, may be considering asking for the recusal of the judicial commissioner who had replaced Adlin when the latter was transferred to the intellectual property court.

Rosmah had also got a new set of solicitors, as Messrs Nandrajog replaced Messrs Reza Rahim & Rajivan as her new lawyers, effective Sept 23.

Judicial Commissioner Leong Wai Hong had replaced Adlin for the case management which was heard on Thursday.

It is understood that Rosmah may apply to recuse Leong, as he was previously a partner with Messrs Skrine before joining the judiciary.

Messrs Skrine is in charge of 1MDB’s main suit against Rosmah’s husband, former prime minister Datuk Seri Najib Razak, and 1MDB’s office bearers, where the law firm had also obtained a US$681 million Mareva injunction (asset-freezing order) by the High Court against Najib, and the Court of Appeal upheld it.

Leong indicated he would get back to the parties over his views, and possibly a decision on this matter.

In the meantime, the JC maintained 1MDB’s Mareva injunction application, and Rosmah’s application to seek further and better particulars to the suit where the hearing dates had been earlier fixed for Oct 24 and Oct 30 respectively.

The outcome of Thursday’s case management was confirmed by Lee Shih from Messrs Lim Chee Wee Partnership, who appeared for 1MDB.

On Sept 9, Adlin dismissed Rosmah’s application to recuse her, ruling that there was no real danger of bias for her to preside as she (Adlin) was from the corporate division of law firm Lee Hishammuddin Allen & Gledhill (LHAG), while all affairs related to 1MDB, where LHAG was initially its solicitors, were handled by the legal division.

1MDB, SRC, and some nine other companies, had filed the US$346 million suit against Rosmah, which in their statement of claim (SOC) filed in June alleged that she had bought the jewellery and handbags from 48 vendors in 14 countries.

The companies, which are plaintiffs in the case, claimed that funds from 1MDB and SRC were fraudulently transferred out to entities registered in offshore jurisdictions, which had no connection with or served no legitimate purpose with regards to investments objectives by the (plaintiff) companies.

“These entities, as well the transactions between them involving the fund, served no legitimate commercial purpose other than to act as a conduit for the onward movement and diversion of the funds to obscure final destinations,” the SOC added.

The plaintiffs are seeking first and foremost for a recovery of the luxury goods, their traceable proceeds, and a declaration that Rosmah received the luxury goods for no consideration that were transferred to her in breach of fiduciary duties or breach of trust.

Alternatively, the plaintiffs seek to recover the sum of US$346.01 million or approximately RM1.632 billion for the cost of the luxury goods that Rosmah received as a result of the breach.

Also named in the suit is Singaporean Shabnam Naraindas Daswani @ Natasha Mirpuri, who is also named as a defendant for having purchased or procured the luxury goods for Rosmah.

The SOC further claimed that this suit follows a failed forfeiture application by the authorities following the Pavilion condominium raid.

Following the 14th general election in May 2018, the police had conducted a highly publicised raid on a condominium at Pavilion Kuala Lumpur, owned by OBYU Holdings Sdn Bhd. The police seized close to 12,000 pieces of jewellery, several hundred handbags and watches.

The SOC states that after obtaining the OBYU Holdings Sdn Bhd forfeiture application cause papers, the plaintiffs and liquidators could begin their investigation and initiate discovery applications against the vendors in Hong Kong, the US, and the UK.

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