KUALA LUMPUR: Malaysia has been granted a three-month time extension to restrict PetroSaudi International Ltd (PSI) and its director Tarek Obaid from accessing US$340mil (RM1.61bil) linked to 1Malaysia Development Bhd (1MDB).
High Court judge Justice Noor Ruwena Mohd Nurdin made the order after allowing an application by deputy public prosecutor Mahadi Abdul Jumaat who represented the government.
The government filed a notice on Dec 5 seeking the extension.
“I have considered the objection by the respondent (Obaid) as this matter has been prolonged.
“However, I must also consider the public interest. The court has to strike a balance and give it a bit of time in order for prosecution to wrap up their case,” she said yesterday.
The court then allowed a three-month time extension, which ends March 23 of next year.
On May 10, the government successfully blocked PSI and Obaid from accessing the funds tied to 1MDB.
The funds are held in a client account at Clyde & Co LLP in the United Kingdom for PetroSaudi Oil Services (Venezuela).
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, which seeks to restrict dealings with the funds belonging to PSI and PSOS-VZ in the escrow account, is resolved.
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.
