KUALA LUMPUR – A London judge has given the go-ahead to Malaysia, to continue its pursuit against Abu Dhabi’s sovereign wealth fund for its role in the multibillion-dollar 1Malaysia Development Bhd (1MDB) scandal.
The Malaysian government challenged a 2017 arbitration settlement between the two sides in the United Kingdom, arguing that Abu Dhabi state-owned International Petroleum Investment Co (IPIC) and Aabar Investments were aware of fraud allegations against former prime minister Datuk Seri Najib Razak at the time the deal was struck.
Bloomberg reported that judge Andrew Baker had on Thursday granted an extension of time for the claim to be properly served to bring this “unusual” case to a full trial.
“That is no doubt an exceptional length of extension to grant, but this is an exceptional case,” he said.
1MDB was an investment fund originally intended to develop the Southeast Asian nation’s economy. Instead, much of the money was allegedly embezzled by people connected to Najib and diverted for bribes.
The London case is among a series of legal and regulatory probes around the world – including the United States and Malaysia – surrounding 1MDB.
Both sides are embroiled in the London legal fight with claims that IPIC and Aabar were complicit in the 1MDB fraud, according to court filings.
If Malaysia is successful at trial, it will be able to pursue these claims further in court.
“This result will finally allow the commercial court to fully scrutinise important aspects of the 1MDB fraud as part of an open and transparent process,” said Richard Little, a lawyer at Eversheds Sutherland who represents 1MDB and Malaysia’s finance minister.
Lawyers for IPIC and Aabar at Clifford Chance declined to comment. – The Vibes, November 5, 2021
