KUALA LUMPUR (March 12): The High Court has issued a prohibition order against PetroSaudi International (PSI) co-founder Tarek Obaid and two companies from accessing and dealing with 41 pieces of jewellery worth about £9 million, allegedly linked to 1Malaysia Development Bhd (1MDB).

High Court judge K Muniandy issued the order on Wednesday, after allowing deputy public prosecutor (DPP) Mahadi Abdul Jumaat's application under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). This was an ex-parte (involving only one side) application.

Section 53 states that the public prosecutor (PP) may make a prohibition application barring parties from dealing with property held outside of Malaysia, if the PP is satisfied that any of the property is: a) the subject matter or evidence relating to the commission of an offence under Sub-section 4(1) or a terrorism financing offence; b) terrorist property; c) proceeds of an unlawful activity; or d) the instrumentalities of an offence.

In gist, the order prohibits whomever holds a property, or whomever a property is deposited with, from dealing with it.

Besides Tarek, the two others included in the prohibition order are jewellery company SJ Phillips Ltd in London, and storage and shipping company Malca-Amit Far East Ltd in Hong Kong.  

Mahadi informed the court on Wednesday that this is the third time such an order has been sought from the court in this case. He added that Malaysia's Attorney General’s Chambers (AGC) had served the previous orders to the relevant Hong Kong authorities, but had not received any updates.

It is understood that such orders expire after a year, and the AGC had obtained similar orders against Tarek in 2023 and 2024, but had not received any updates.

This is part of the Malaysian authorities’ efforts to recover assets linked to the multi-billion dollar 1MDB scandal.

Last week, the same court issued a similar order against Prince Faisal bin Turki Bandar Al Saud — one of the purported Saudi Arabian royals who allegedly deposited "donations" promised to former prime minister Datuk Seri Najib Razak and the ex-PM's former media advisor, British national Paul Stadlen.

The order prohibits Prince Faisal from accessing approximately US$4.5 million held at Riyad Bank, and Stadlen from controlling over 12 million units in UK companies and investments, including equity funds and bonds, through Wealthtek LLP.

Last August, a Swiss court found that Tarek, along with fellow PSI co-founder Patrick Mahony, had deliberately colluded with fugitive businessman Low Taek Jho (Jho Low) and 1MDB personnel, to embezzle funds from 1MDB. The court convicted both men of fraud, criminal mismanagement, and money laundering. They were indicted with defrauding 1MDB of US$1.8 billion to enrich themselves, with Obaid getting at least US$805 million and Mahony at least US$37 million.

Obaid was sentenced to seven years in prison, while Mahony received a sentence of six years. They were also ordered to pay back US$1.75 billion to 1MDB. Both are appealing against the ruling.

Read also:
Court grants restraining order against Prince Faisal and Paul Stadlen to prevent them accessing assets allegedly linked to 1MDB 
Court grants order barring Tarek Obaid, others from accessing US$340m allegedly linked to 1MDB