KUALA LUMPUR (Dec 19): High Court judge Wan Muhammad Amin Wan Yahya has taken over a civil suit against former prime minister Datuk Seri Najib Razak's wife, Datin Seri Rosmah Mansor, and a Singaporean woman, Shabnam Naraindas Daswani, involving the purchase of luxury goods using funds allegedly diverted from 1Malaysia Development Bhd (1MDB).

The lawsuit, filed by 1MDB, SRC International Sdn Bhd, and nine other companies, seeks to recover approximately US$346 million (RM1.63 billion) in luxury goods allegedly purchased for Rosmah using funds diverted from the companies.

Last month, judge Leong Wai Hong recused himself from the case due to his former firm's involvement in 1MDB's main suit against Najib and other former directors and staff of the company.

Rosmah had applied to recuse another High Court judge, Adlin Abdul Majid. Adlin had refused to recuse herself but was later transferred to a different division.

Muhammad Amin, who took over the case on Dec 19, was appointed as Judicial Commissioner in 2020 and confirmed as a High Court judge in January 2023.

The case revolves around Rosmah's alleged purchase of about 12,000 pieces of jewellery and luxury handbags from 48 vendors in 14 countries using funds allegedly diverted from 1MDB and its then subsidiary SRC. The companies claim that the transactions were part of a larger fraud scheme to transfer funds out of Malaysia and into offshore jurisdictions.

During case management before Muhammad Amin on Thursday, 1MDB and the companies sought leave to produce an additional affidavit from financial fraud investigator Richard Templeman regarding an alleged concealment of fraud against them.

The plaintiffs, who are seeking an injunction against Rosmah to bar her from removing those valuables, claimed they had received new information and documents from vendors in several countries that are relevant to their case.

The lawsuit seeks various remedies, including the recovery of the luxury goods, a declaration that Rosmah had breached her fiduciary duties or trust, and an order to freeze Rosmah's assets. Shabnam, who is also accused of purchasing or procuring luxury goods for Rosmah, is another defendant in the case.

Lawyer Villasha Anbalagan, from Messrs Lim Chee Wee and Partners for 1MDB, said Muhammad Amin fixed Feb 7 next year as case management for both parties to update on the status of the suit. Villasha also confirmed that both parties have agreed not to file any applications to recuse the judge.

Separately on Thursday, Rosmah was granted an acquittal on 17 counts of money laundering and tax evasion.

She had previously been convicted by the High Court of soliciting and receiving bribes related to a solar hybrid project for rural schools in Sarawak. Sentenced to 10 years in jail and fined RM970 million, she is appealing that case.

This US$346 million civil suit against Rosmah and Shabnam was filed in June this year.

According to the statement of claim, the companies claimed that the funds used to purchase the luxury goods were monies from 1MDB and SRC that were fraudulently transferred out of Malaysia to entities registered in offshore jurisdictions with no connection to the companies' investment objectives. Those transactions, they said, served only to act as a conduit for diverting funds to obscure final destinations.

The plaintiffs are seeking several remedies:

Shabnam, also known as Natasha Mirpuri, is named as defendant alongside Rosmah for having purchased or procured the luxury goods for her.

The lawsuit follows a failed forfeiture application by authorities after a highly publicised raid on a condominium owned by OBYU Holdings Sdn Bhd at Pavilion Kuala Lumpur in May 2018. The police seized over 12,000 pieces of jewellery, several hundred handbags and watches during the raid.

After obtaining the forfeiture application cause papers, the plaintiffs and liquidators began their investigation and initiated discovery applications against vendors in Hong Kong, the US, and the UK.

It was reported in June that Rosmah had given her undertaking not to dispose of the 12,000 luxury items at issue in this suit.

Read also:
Rosmah succeeds in recusing judge from hearing 1MDB suit against her and Singaporean
1MDB: Rosmah bought jewellery and handbags worth US$346m from 48 vendors in 14 countries
1MDB, SRC seek to freeze Rosmah’s assets in luxury goods lawsuit
Rosmah agrees not to dispose of the 12,000 luxury items allegedly bought with US$350m 1MDB money
Rosmah acquitted in RM7.1m money-laundering and tax evasion case