(Kuala Lumpur, 24th) The High Court today approved the government's application to extend the restriction period on PetroSaudi International Ltd (PSI) and the company's director, Tarek Obaid, prohibiting them from using US$340 million (RM1.61 billion) in funds related to 1Malaysia Development Berhad (1MDB) until March 23 next year.
This sum is part of the government’s recovery efforts, alleged to be linked to the 1MDB scandal and is being held in a client account by Clyde & Co, a UK law firm, in escrow for PetroSaudi Oil Services (Venezuela) Ltd (PSOS-VZ).
PSOS-VZ is a subsidiary of PetroSaudi Oil Services Ltd. (PSOSL), which is itself a unit under PSI and co-founded by Tarek Obaid.
High Court Judge Noorin Badaruddin granted the extension after approving Deputy Public Prosecutor Mahadi Abdul’s application, which was submitted via a notice on December 5.
“I have considered the respondent’s (Tarek’s) objection, considering the matter has been ongoing for some time. However, I also must take public interest into account; the court must balance both parties and allow sufficient time for the prosecution to present evidence.
“The court approves the extension of the restriction period from the date of this order, for three months until March 23 next year.”
The High Court had originally issued the restriction order on December 11 last year, which was set to expire on December 10 this year.
Also present representing the prosecution today were Deputy Public Prosecutors Nizuwan and Nurul Izzati; Tarek was represented by lawyer Datuk Mohamad Yusof; Alex Tan represented PSI, PSOS-VZ, and Temple Fiduciary Services Ltd, while law firm Clyde & Co had no representation.
The court had in 2020 approved the government’s temporary injunction application to prevent the parties from transferring the funds allegedly linked to 1MDB and to keep it in a third-party escrow account held by the company until the permanent injunction proceedings conclude.
The temporary injunction serves to maintain the status quo among all parties and prevent any transactions involving funds belonging to PSI and PSOS-VZ.
The Malaysian government claims that these funds originated from 1MDB for a joint venture with PSI in 2010 to establish 1MDB PetroSaudi Ltd, and the above application was filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
According to international media reports in August 2024, the Swiss Federal Criminal Court convicted Tarek of embezzling US$1.8 billion from 1MDB and sentenced him to seven years in prison.
This sum is part of the government’s recovery efforts, alleged to be linked to the 1MDB scandal and is being held in a client account by Clyde & Co, a UK law firm, in escrow for PetroSaudi Oil Services (Venezuela) Ltd (PSOS-VZ).
PSOS-VZ is a subsidiary of PetroSaudi Oil Services Ltd. (PSOSL), which is itself a unit under PSI and co-founded by Tarek Obaid.
High Court Judge Noorin Badaruddin granted the extension after approving Deputy Public Prosecutor Mahadi Abdul’s application, which was submitted via a notice on December 5.
“I have considered the respondent’s (Tarek’s) objection, considering the matter has been ongoing for some time. However, I also must take public interest into account; the court must balance both parties and allow sufficient time for the prosecution to present evidence.
The High Court had originally issued the restriction order on December 11 last year, which was set to expire on December 10 this year.
Also present representing the prosecution today were Deputy Public Prosecutors Nizuwan and Nurul Izzati; Tarek was represented by lawyer Datuk Mohamad Yusof; Alex Tan represented PSI, PSOS-VZ, and Temple Fiduciary Services Ltd, while law firm Clyde & Co had no representation.
The court had in 2020 approved the government’s temporary injunction application to prevent the parties from transferring the funds allegedly linked to 1MDB and to keep it in a third-party escrow account held by the company until the permanent injunction proceedings conclude.
The temporary injunction serves to maintain the status quo among all parties and prevent any transactions involving funds belonging to PSI and PSOS-VZ.
The Malaysian government claims that these funds originated from 1MDB for a joint venture with PSI in 2010 to establish 1MDB PetroSaudi Ltd, and the above application was filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
According to international media reports in August 2024, the Swiss Federal Criminal Court convicted Tarek of embezzling US$1.8 billion from 1MDB and sentenced him to seven years in prison.