KUALA LUMPUR (Sept 10): The 1MDB asset recovery task force said in a statement on Thursday that a claim filed against DBS Bank Ltd in the Singapore High Court centres on five accounts opened in 2013 by four companies linked to Malaysian businessman Tan Kim Loong, better known as Eric Tan.
The claim was filed by four companies — Affinity Equity International Partners Ltd, Blackrock Commodities (Global) Ltd, Platinum Global Luxury Services Ltd and TKIL Global Investments Ltd — through which funds misappropriated from 1Malaysia Development Bhd were allegedly channelled. All four companies are in liquidation and filed the claim together with their court-appointed liquidators.
According to the statement of claim, Tan was named as the sole beneficial owner of all four companies and was a signatory to each of the five DBS accounts. Tan is a known associate of fugitive financier Low Taek Jho, better known as Jho Low, and allegedly acted as his proxy.
The claim alleges that more than US$1 billion in funds stolen from 1MDB and SRC International passed through the four companies between 2013 and 2014.
The funds were allegedly moved between the companies without a legitimate purpose before being paid to third parties, including jewellers, a private jet charterer and nightclubs. The claim also alleges that some of the money was used in connection with the purchase of a superyacht.
The 1MDB task force welcomed the liquidators’ decision to pursue the claim on behalf of the victims of the fraud, including 1MDB. It said banks should question suspicious transactions involving shell companies, but that such questions were not asked in this case.
The task force said any money recovered would be returned to the Malaysian people.