KUALA LUMPUR: The High Court here was told that it was not possible for Petrosaudi Oil Services (Venezuela) Limited (PSOS-VZ) to pursue an oil exploration project with the Venezuelan government without the transfer authorisation of US$185mil from 1Malaysia Development Berhad (1MDB) funds by its parent company, Petrosaudi International Ltd (PSI).
Deputy Public Prosecutor Norinna Bahadun said PSI director Tarek Obaid had facilitated the transfer as he was the one – at all times – who had ultimate control of all Petrosaudi accounts, including the transfer of the funds as he was the authorised signatory for these accounts.
Norinna said the US$185mil was part of the US$1bil meant for the 1MDB-PSI joint venture and the PSI subsidiary company (PSOS-VZ) received the money sometime in 2010.
"From US$185mil, part of it was paid to buy a drill ship for an oil exploration project with the Venezuelan government.
"This is not possible if it was not for (funds from) 1MDB and that PSOS-VZ was able to bankrolled from it," she said on Tuesday (Sept 20) when submitting the government's application to block Obaid, PSI and its subsidiary PSOS-VZ from using over US$340mil linked to 1MDB, which was kept in an escrow account at a United Kingdom's law firm, Clyde & Co before Judge Datuk Ahmad Shahrir Mohd Salleh.
Norinna further argued the movements of money had been camouflaged by Obaid and he had disguised the origin of funds that were supposed to be for oil exploration in Turkmenistan as well as Argentina, in addition to the one in Venezuela.
"We submit that the funds in question, the subject matter ought to be restrained and forfeited from any dealings, we have demonstrated the origins of these funds.
"We have demonstrated in previous submissions on how the money trail had gone into and how it was filtered down on the creation of the oil exploration contract," she said.
On July 16, 2020, the court granted the government's application for an interim order to block the parties from moving the monies linked to 1MDB and kept it in a client's account at a United Kingdom-based law firm.
The interim order is to maintain the status quo of the parties until the disposal of the government's prohibition application to seek an order to restrain any dealings on the monies belonging to PSI and its subsidiary, PSOS-VZ which are currently in an escrow account held by Clyde & Co.
Besides the US$340mil, the government, in its application is also seeking unspecified money that was deposited under an intermediate account name, Temple Fiduciary Services Limited, at Barclays Bank in the United Kingdom.
The application, filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act, named Obaid, PSI, PSOS-VZ, Clyde & Co and Temple Fiduciary as the first to fifth respondents.
The submission before Justice Ahmad Shahrir continues on Wednesday (Sept 21). – Bernama
