1MDB files suit against PetroSaudi exec, UK firm

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) has sued Patrick Mahony of PetroSaudi International Ltd (PSI) and a law firm in Britain for US$1.83bil for alleged dishonest assistance in an investment it partook in.

The sovereign wealth fund filed the lawsuit at the High Court registry through law firm Messrs Lim Chee Wee Partnership on May 7.

It named Mahony, who is PSI’s chief investment officer, and White & Case LLP as the first and second defendants, respectively.

In the statement of claim, 1MDB said that it had been misled about an alleged multi-billion joint-venture agreement (JVA) with PSI.

“1MDB’s eventual joint venture partner was not PSI but PetroSaudi Holdings (Cayman) Ltd.

“The assets that were injected by PetroSaudi Holdings (Cayman) into the joint-venture company were worth substantially less than US$1.5mil at the material time,” it stated.

It claimed that its board was fraudulently misled that the joint-venture company was owned by King Abdullah of Saudi Arabia when it was not.

The company further claimed that the whole thing was a sham and resulted in 1MDB suffering a complete loss of its investment.

“By reason of the conspiracy, 1MDB has suffered loss and damages of US$1.83bil,” 1MDB said.

1MDB claimed Mahony had acted dishonestly in assisting former prime minister Datuk Seri Najib Razak in breach of fiduciary duties and Mahony had participated in the scheme to defraud substantial sums of monies from 1MDB.

It claimed Mahony had engaged and instructed White & Case in the joint venture, whereby the law firm also had acted dishonestly in the fraud.

1MDB is seeking, among others, a court order to compel the defendants to repay it US$1.83bil, interests and costs.

Najib has been serving a jail sentence at the Kajang Prison since Aug 23, 2022, after being convicted of misappropriating RM42mil in SRC International Sdn Bhd funds. SRC International is a subsidiary of 1MDB.

After he filed a petition for a royal pardon on Sept 2, 2022, Najib’s jail term and fine were recently reduced.