KUALA LUMPUR: The government has blocked PetroSaudi International Ltd (PSI) and its director Tarek Obaid from accessing US$340mil (RM1.61bil) tied to 1Malaysia Development Berhad (1MDB).
Justice Ahmad Shahrir Mohd Salleh approved the government's request after evidence showed the US$340mil is linked to an offence under Subsection 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA).
"In producing the application, affidavits and considering the submission of the learned deputy public prosecutor and the learned counsel, this court is satisfied that sufficient evidence has been presented in accordance with Subsection 53(2)(a) of the AMLATFPUAA," the judge said on Wednesday (May 10).
The judge said that Subsection 53(2)(a) mandates the court to prohibit dealings with the property if evidence satisfies any outlined categories.
The funds are held in a client account at Clyde & Co LLP in the UK for PetroSaudi Oil Services (Venezuela).
Deputy Public Prosecutor Norinna Bahadun represented the prosecution. Lawyer Datuk Mohd Yusof Zainal Abiden acted for Obaid, while lawyer Alex Tan represented PSI, PSOS-VZ and Temple Fiduciary Services Ltd.
Clyde & Co was not represented. PetroSaudi Oil Services (Venezuela) is a subsidiary of PetroSaudi Oil Services Ltd (PSOSL), itself a unit of PSI co-founded by Obaid.
In 2020, the court issued an interim order to prevent the parties from moving the funds linked to 1MDB, keeping them in an escrow account.
The interim order maintains the status quo until the government's prohibition application is resolved, which seeks to restrict dealings with the funds belonging to PSI and PSOS-VZ in the escrow account.
The Malaysian government alleges the funds originated from 1MDB in a 2010 joint venture with PSI to form 1MDB PetroSaudi Ltd.
The application was filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
