Court to hear disposal of yacht to recoup 1MDB billions

KUALA LUMPUR: The court will hear the application for the disposal of the luxury yacht Equanimity today, a move, if successful, will mark the first effort by Malaysia to recover the billions diverted from the troubled 1Malaysia Develoment Bhd (1MDB).

1MDB and its two subsidiaries 1MDB Energy Holdings Limited and 1MDB Global Investment Limited as well as the government of Malaysia have named the owner of the ship Equanimity of Cayman Islands as the sole defendant in the suit.

It was filed by Jeremy Joseph and partners law firm yesterday.

In the notice of application, the four plaintiffs are asking for the sale of the vessel, bunkers, fuel, lubricants and other consumables on board to be conducted through an open tender or private treaty by the Admiralty Court of sheriff.

The firms want the sheriff to receive the bids or offers for the vessel and the bunkers and the purchase price shall be paid to the sheriff in US dollar or euros or Ringgit Malaysia.

The plaintiffs said the sale proceeds of the ship will be paid into the court and kept in a bank account in Malaysia as approved by the accountant-general.

The firms said the sheriff and/or the plaintiffs are authorised to arrange and pay for the repatriation of the vessel’s master, officers and crew.

The notice also stated that the ship is also physically deteriorating as it is exposed to the elements of sea and weather and it is in the interest of all parties that the vessel is sold as soon as possible to avoid further diminution of the value of the vessel.

“The diminution will cause hardship on the plaintiffs as the value of the vessel has already depreciated and the continuing costs of maintaining her arrest will only reduce the amount to be recovered,” the firms added.

On Aug 6, a writ of summons was issued to the owner of the vessel as well as to Wilson Yacht Management Ltd, the company that operates Equanimity.

The hearing of the application has been fixed for today at the Kuala Lumpur Courts Complex here and followed by a press conference.