KUALA LUMPUR – The government is still negotiating with several parties, including PetroSaudi International Ltd (PSI) and PetroSaudi Oil Services (Venezuela) Ltd (PSOS-VZ), with regard to its application to freeze more than US$340 million (RM1.4 billion) in 1Malaysia Development Bhd-linked funds kept in a client’s account at a UK law firm.
Counsel Alex Tan, appearing for PSOS-VZ, told justice Mohd Nazlan Mohd Ghazali this during case management today.
“I believe the parties are still in the midst of finding an alternative to resolve this matter, and will need more time. We humbly request another mention date before this court for us to update if the negotiations are successful.”
Deputy public prosecutor Budiman Lutfi Mohamed confirmed the matter.
In response, Nazlan asked Tan if there has been real progress in the ongoing discussions.
“There was a serious exchange of correspondence between us until last week, but I am still getting instructions from the client,” said the lawyer.
“We also had a face-to-face meeting with government representatives before the commencement of the conditional movement control order on October 14.”
The court then set February 4 next year for case management, pending updates on the negotiations.
On July 16, Nazlan granted the government’s application for an interim order to block PSI, its director Tarek Obaid and its subsidiary PSOS-VZ from moving the 1MDB-linked monies to other entities.
The interim order is to maintain the status quo of the parties until the disposal of the government’s prohibition application seeking an order to restrain any dealings of the monies belonging to PSI and PSOS-VZ. The funds are currently in an escrow account held by Clyde & Co LLP.
Besides the US$340 million, the government is also seeking an unspecified sum that was deposited under an intermediate account name, Temple Fiduciary Services Ltd, at the UK’s Barclays Bank.
The application, filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act, named Tarek, PSI, PSOS-VZ, Clyde & Co, and Temple Fiduciary as the first to fifth respondents, respectively.
On August 19, Nazlan allowed PSOS-VZ to access US$1.357 million of the US$340 million, after allowing the company’s bid to amend the interim order prohibiting it from moving the monies to other entities.
PSOS-VZ is seeking to vary the terms of the interim order for part of the monies to be released, to pay for business expenses and legal costs.
The US$1.357 million is to be paid to UK-based law firm Kerman & Co, following the conclusion of arbitration by the company. – Bernama, December 14, 2020
