41 entities sued over 1MDB

PUTRAJAYA: The government has taken another step towards recovering assets worth RM20bil allegedly misappropriated from 1Malaysia Development Bhd (1MDB).

The Malaysian Anti-Corruption Commission (MACC) yesterday announced that it had filed a civil forfeiture suit against 41 entities comprising individuals, companies and political parties.

It aims to recover RM270mil, the biggest forfeiture by the anti-graft body so far. A special task force

will also be formed to regain 1MDB-related assets worth US$5bil (RM21bil) abroad.

With the help of the US Justice Department, RM919mil has been seized from overseas assets, including those involving film production house Red Granite Picture and luxury New York hotel Park Lane.According to MACC chief commissioner Latheefa Koya, civil forfeiture is a pragmatic way of getting the monies back.

“Recovery of assets is as important as going for prosecution. There may be many people who received the money but if we were to go on prosecution, that might take time.

“Since the law is clear and we have alternative ways to recover the money, we go for the more pragmatic way.

“The MACC team has done a good job in getting (information on) the actual transactions and looking at the money trail. I’m pretty confident that this is a straightforward case,” she said in her maiden press conference as MACC chief.

She said the 41 named in the suit were individuals, political parties, trust funds and business entities that had received monies from former prime minister Datuk Seri Najib Razak’s personal AmBank account.Umno was the biggest recipient, with RM212mil going into the accounts of several state liaison committees, divisions and leaders.

The MACC filed the suit at the Kuala Lumpur High Court on Wed­nesday and hearing has been set for June 25 and July 10, 24 and 31.

Latheefa said the respondents had the right to defend themselves by filing affidavits to challenge the forfeiture suit.

“One cannot use ‘being surprised’ or ‘shocked’ as an excuse. As far as the Anti-Money Laundering Act is concerned, as long as we can show that there is some unlawful activity and the person who receives the money did not take steps to find out where it came from, then they are subject to the forfeiture process.

“Once we have filed, they have the opportunity to put in an affidavit to explain how they got the money,” she said.

Since the suit was filed, Latheefa said two individuals had come forward to surrender RM2mil.

To a question, she said Najib was not among the 41 respondents and that asset recovery from the former premier would be done differently as he is facing criminal prosecution.

“These are basically third parties who received the money,” she said.

Asked about her recent meeting with Tun Dr Mahathir Mohamad, she said it was her first courtesy call on the Prime Minister since she took office, adding: “We did not discuss files of cases. I wouldn’t be discussing files with him.”

Latheefa also said her officers had kept her busy with this case and that she would meet the press more in the future.