KUALA LUMPUR (March 12): Strategic development company 1Malaysia Development Bhd (1MDB) on Wednesday produced more documentary evidence, through UK-based Kroll Advisory Ltd’s director of investigation Richard Templeman, to trace jewellery and other luxury goods purportedly purchased by Datin Seri Rosmah Mansor allegedly using the company’s funds.
Templeman affirmed two affidavits last month, as sighted by The Edge following a file search, where he claimed to have led ongoing investigations into misappropriated funds from 1MDB to various vendors, based on documents obtained through five companies which had been liquidated.
The liquidated companies are Affinity Equity International Partners Ltd, Alsen Chance Holdings Ltd, Blackrock Commodities (Global) Ltd, Blackstone Asia Real Estate Partners Ltd, and Brightstone Jewellery Ltd, following the purchases of jewellery and other valuables priced from US$100,000 (RM441,709) to US$27.3 million for Rosmah.
The US$27.3 million, as documented by the investigator, is for the purchase of a 22.17-carat diamond and a diamond necklace from American jewellery designer Lorraine Schwartz. This was paid off in two tranches, firstly a sum of US$4.3 million by an associate of fugitive businessman Low Taek Jho (Jho Low), Eric Tan Kim Loong, via Alsen Chance Holdings Ltd in December 2012, and the remainder US$23 million was paid by Jho Low on Sept 10, 2013.
According to Templeman’s affidavit, Schwartz had claimed to have met with Jho Low and Rosmah in Monaco and New York, to discuss the design of the jewellery, prior to the payments being made.
The 22.17-carat diamond is believed to be the infamous pink diamond that was rumoured to be purchased by Rosmah.
Besides Lorraine Schwartz, the others whom Templeman contacted for his investigation are jewellers and vendors like David Morris, Marwan Nicholas Chatila, A Arslanian, Jacob & Co, Greene & Co/Michael Greene, Al Mahaba, and Lunadiam.
Templeman said that in his investigations, he found out that some of the jewellers had been in correspondence with Rosmah, whom they said her known address was at 11, Jalan Langgak Duta, Taman Duta, Kuala Lumpur.
Templeman further undertakes to produce more documentary evidence or information about the related jewellery and valuables when it is forthcoming.
Hence, last month Templeman affirmed the affidavit in support of 1MDB’s (along with 10 other companies that include 1MDB subsidiaries, SRC International Sdn Bhd, and the five liquidated companies) application for a Mareva injunction or a prohibitory order to freeze the sum of US$346.01 million be imposed on Rosmah from moving the valuables.
1MDB is seeking the prohibitory order or a Mareva injunction, pursuant to Order 29 Rule 2 of the Rules of Court that was filed on June 10, last year.
At the same time, Rosmah has also filed a discovery application for the said items, requiring 1MDB and other plaintiffs to provide information of the valuables.
A case management was done before High Court (Commercial Division) Wan Muhammad Amin Wan Yahya, who fixed a hearing date for both applications for July 31. Wan Muhammad Amin is the third judge taking over the case.
Background to the suit
1MDB and others had filed the US346.01 million suit against Rosmah and Singaporean woman Shabnam Naraindas Daswani, who is also known as Natasha Mirpuri, last June. The suit was filed by Messrs Lim Chee Wee Partnership.
The companies in their statement of claim allege 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.
Rosmah, 72, is alleged to have bought the valuables from 48 vendors from 14 countries. She is the wife of imprisoned former prime minister Datuk Seri Najib Razak.
The plaintiffs are seeking several remedies, namely:
- A recovery of the luxury goods, their traceable proceeds, and a declaration that Rosmah received them for no consideration, alleging that it is a breach of her fiduciary duties or trust;
- An alternative amount of US$346.01 million (approximately RM1.632 billion) to compensate the plaintiffs for the cost of the luxury goods she received as a result of the breach; and
- A court order to freeze Rosmah’s assets to the sum of US$346.01 million.
Shabnam 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 Residences, 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.
In a related development, Messrs Sivananthan has applied to discharge themselves from representing Shabnam. The law firm filed the application to represent Shabnam on Tuesday.
Read also:
Third judge takes over 1MDB's US$346 mil suit against Rosmah and Singaporean woman
1MDB: Rosmah bought jewellery and handbags worth US$346m from 48 vendors in 14 countries
Rosmah agrees not to dispose of the 12,000 luxury items allegedly bought with US$350m 1MDB money
Rosmah’s name in US$23m pink diamond necklace invoice does not implicate her in its purchase, say her lawyers