Malaysia court orders freeze on Najib’s assets, limits monthly bank withdrawals to RM100,000
KUALA LUMPUR: Malaysia’s High Court has granted an injunction against former prime minister Najib Razak to effectively freeze his assets, including limiting his monthly bank withdrawals to RM100,000 (US$24,000).
According to Malaysian media reports, the application for the injunction was filed at the High Court on Tuesday (Feb 8) by 1Malaysia Development Bhd (1MDB) and four of its subsidiaries.
The court order as sighted by the Star was related to a lawsuit filed by 1MDB and its subsidiaries 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd and Global Diversified Investment Company Ltd.
The lawsuit involves a US$681 million claim against Najib and seven other former 1MDB officers.
The other seven defendants are Terence Geh (former executive director of finance), Jasmine Loo (former general counsel), Casey Tang (former executive director), Vincent Beng (former chief investment officer), Radhi Mohamad (former chief financial officer) and Kelvin Tan (former director of investments).
The asset freeze injunction, however, only applied to Najib, who is the first defendant in the lawsuit, the Star reported.
The injunction was granted by Judicial Commissioner Atan Mustaffa Yussof, who heard the application for a mareva injunction filed by Messrs Skrine, solicitors for 1MDB and the four subsidiaries.
A mareva injunction is a court order which effectively freezes assets of a defendant from being dissipated pending the outcome or completion of a legal action, according to Bernama.
The national news agency added that according to the injunction, Najib must not dispose of or reduce the value of his assets up to US$681 million.
If his assets exceed US$681 million, Najib can remove or dispose of the assets as long as the total unencumbered value remains not less than the said amount, according to the report.
The injunction also restricted him to making withdrawals of up to only RM100,000 a month for his living and legal expenses.
If he needs more than the amount allowed, he would have to get written permission from 1MDB and Global Diversified Investment Company Limited (formerly known as 1MDB Global Investments Limited), Bernama reported.
According to the Star, assets would include any property, whether movable or immovable, and any money standing to the credit of any bank account.
The court has fixed Feb 21 for an inter-parte hearing involving all parties involved in the injunction.
In December last year, Malaysia's Court of Appeal upheld Najib's guilty verdict in a corruption trial involving RM42 million of 1MDB’s-linked funds.
The court of three judges dismissed Najib’s appeal on all seven charges of criminal breach of trust, money laundering and abuse of power.
It also upheld the conviction made by the High Court in July last year which found Najib guilty of the charges and sentenced him to 12 years in jail and fined RM210 million.
The Appeal Court, however, allowed Najib’s application for a stay of execution of the sentence pending appeal to the Federal Court.
