KUALA LUMPUR (Nov 19): Newly confirmed High Court judge Leong Wai Hong has recused himself from hearing 1Malaysia Development Bhd (1MDB) and 10 other companies' US$346 million (RM1.63 billion) suit against Datin Seri Rosmah Mansor and Singaporean Shabnam Naraindas Daswani.
This follows an application by Rosmah to recuse Leong from presiding in her trial, as the judge was a former partner in the law firm of Messrs Skrine, which dealt with 1MDB and its four subsidiaries' main suit against her husband Datuk Seri Najib Razak.
In proceedings online, Leong said Rosmah had applied to recuse him from hearing the suit on the grounds that he had been a partner of the law firm and the head of the litigation and arbitration practice at Messrs Skrine from 2011 to 2021.
The judge said he further averred that at the material time, Messrs Skrine acted for 1MDB in matters related to what is pleaded in the suit, including the 1MDB investigations and Rosmah’s husband Najib, the then prime minister of Malaysia.
“After considering the application, I agreed to recuse myself from hearing this suit on the principle that ‘Justice must not only be done, but must also be seen to be done’,” he added.
Leong also said 1MDB’s counsel had earlier informed him that they would be opposing the application, but now decided not to oppose the application via a letter to the court dated Oct 16, 2024.
“In the premise, I allow Enclosure 242 (Rosmah’s) application. This suit will be heard before another High Court judge,” Leong said.
However, the judge did not fix a mention date for the case to be case managed and this will likely be done by a new judge.
Prior to this, Rosmah tried to recuse another High Court judge, Adlin Abdul Majid, on similar grounds, as 1MDB had filed the suit through Messrs Lee Hishammuddin Allen and Gledhill, a firm that Adlin had previously worked for.
However, Adlin decided not to recuse herself, but she was transferred to the High Court (Intellectual Property division) and Leong took over the case.
Rosmah was represented by Datuk Seri Rajan Navaratnam, Oazair Tyeb, Hilwa Bustam, Dinesh Nandrajog and Sheena Sebastian.
1MDB and the 10 other companies were represented by Datuk Lim Chee Wee, Nathalie Ker Si Min, Sachin Nair and Villasha Anbalagan.
Prior to this, it was reported that Rosmah had a change of lawyers, replacing Messrs Reza Rahim & Rajivan with Messrs Nandrajog, and that she was considering recusing Leong.
Rosmah has already been convicted by the High Court on three counts of graft over the solar hybrid case involving 369 rural schools in Sarawak, where she has been sentenced to 10 years’ jail and fined RM970 million, pending appeal.
Suit filed earlier this year
1MDB, SRC International Sdn Bhd and some nine other companies had filed the US$346 million suit against Rosmah, alleged in their statement of claim (SOC) filed in June that she had bought the jewellery and handbags from 48 vendors in 14 countries.
The companies, who 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 are seeking 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.
They are also seeking an order from the court to freeze Rosmah’s assets to that sum.
Shabnam, who is also known as Natasha Mirpuri, is a Singaporean, and was 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 raid of a condominium at Pavilion Kuala Lumpur.
Following the 14th general election in May 2018, the police had conducted a highly publicised raid on the Pavillion condominium owned by OBYU Holdings Sdn Bhd. The police seized close to 12,000 pieces of jewellery, several hundred handbags and watches.
The SOC stated that after obtaining OBYU Holdings Sdn Bhd’s 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.