Malaysia wins UK court battle to have 1MDB case heard in public
- The case revolves around the attempted recovery of US$3.5 billion that was paid to a subsidiary of Abu Dhabi’s state investment fund
- Malaysia alleges agreements made between the two funds were part of a ‘conspiracy to defraud’ by former Prime Minister Najib Razak
Judges at the Court of Appeal in London on Tuesday backed Malaysia’s arguments that private arbitration proceedings were unsatisfactory because it meant the case would be determined without public scrutiny. The court also granted a temporary injunction halting a second round of arbitration sought by Abu Dhabi’s International Petroleum Investment Company (IPIC) and its Aabar Investment unit against 1MDB.
“We are delighted by this outcome” which ensures that the UK’s Commercial Court “will now be able to scrutinise an important aspect of the 1MDB fraud as part of an open and transparent process,” said Richard Little, a lawyer representing the Malaysian government.
The court’s decision comes in a case where Malaysia is seeking recovery of US$3.5 billion that was paid by 1MDB subsidiaries to an IPIC subsidiary, or reduce its liability to pay interest and principal under bonds jointly guaranteed by IPIC up to that same amount. The country alleges that the agreements were made by former Prime Minister Najib Razak as part of a “conspiracy to defraud,” Malaysian Attorney General Tommy Thomas said before the verdict.
