Joint hearing for OBYU, third party in RM680m forfeiture claim

KUALA LUMPUR (Aug 1): OBYU Holdings Sdn Bhd, against which the government has filed a civil forfeiture suit claiming RM680 million worth of assets said to be acquired with 1Malaysia Development Bhd (1MDB) funds, has decided not to object to the gazetting of the forfeiture notice for third-party claims.

However, the suit will be jointly heard with any third-party claim for the assets, High Court Judge Collin Lawrence Sequerah ruled during the case mention yesterday.

This follows an application by the defence for the third-party claim — stipulated under Section 61 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) — to be conducted before OBYU defends its case.

While OBYU concurred that it is the landlord of the apartment unit which housed the seized assets, it has denied interest in the assets.

Defence counsel Datuk Kamarul Hisham Kamaruddin argued that before OBYU can be found liable for anything, the prosecution has to prove all the assets were indeed purchased from unlawful sources.

He said the way to go is to have any eventual third party heard first, before OBYU appears to defend its case under Section 56 of AMLA.

“It is quite clear they (prosecution) have gotten the wrong respondent. What that means will only [unfold] when the proper hearing of the application begins. They will have to stand or fall on what they have chosen,” he added.

Section 56 says that a forfeiture order against a respondent can only be made when the assets are tied to offences conducted under Section 4(1) of the same Act.

Meanwhile, Section 61(4) underlines that the court shall return the seized assets to third-party claimants when it is found that the claimant has a legitimate interest, is not involved in AMLA offences, and is not intentionally ignorant/did not consent to illegal use of its property.

On Jan 31, police seized assets within a property owned by OBYU comprising cash, jewellery, luxury handbags, watches and other accessories.

Together with the property Lot PT 80, Subsection 63 in Kuala Lumpur, the assets were worth RM680 million.

Justice Sequerah set Sept 3 for next case mention for the gazette of the third-party claim notice. Hearing is on Oct 31.

MACC’s RM270m civil forfeiture suit progressing

For a separate forfeiture claim of nearly RM270 million across 41 respondents by the Malaysian Anti-Corruption Commission (MACC) — also for funds allegedly from 1MDB — one of the respondents, Liberal Democratic Party (LDP), will file a representation to the prosecution on the matter by Aug 19.

Should the representation be rejected, hearing before Justice Sequerah is set for Oct 18, said LDP’s lawyer Datuk Jagjit Singh Bant Singh.

The MACC is claiming RM509,560 from the Sabah-based political party.

Another respondent, the Umno Johor liaison committee — which is facing a claim of RM677,872 — will file an affidavit in reply in relation to the prosecution’s application by Aug 19, said its lawyer Mohd Haziq Dhiyauddin Razali.

Justice Sequerah also set Sept 4 for the prosecution to file its affidavit in support, and for case mention on the gazetting of the third-party claim notice. Hearing is set for Oct 4, Mohd Haziq added.

Meanwhile, before High Court deputy registrar T Kavita, Jakel Trading Sdn Bhd has indicated to the prosecutor it may object to the forfeiture action.

The company’s lawyer Thevini Nayagam said the court had fixed Sept 4 for further case management.

Deputy Public Prosecutor Farah Yasmin Salleh from the MACC agreed, but said nothing is finalised yet with regard to Jakel.

Farah also said the case management involves three other defendants, namely the Pahang MCA liaison committee, Hatatex Trading and Aga Touch (M) Sdn Bhd.

She said that for MCA the court had fixed Sept 4 for case management, and Sept 2 for the political party to reply to the forfeiture notice.

“Hatatex and Aga Touch case management has been fixed for Aug 28,” she said. Aga Touch’s lawyer Nur Fazreen Hazrina also confirmed this with MCA lawyer Ken Low.

Like Jakel, Hatatex is a textile store based in Jalan Tuanku Abdul Rahman here, while Aga Touch is a multiple business solution platform company that manages big data.

The MACC is seeking RM835,258 from the MCA Pahang liaison committee, RM11.38 million from Jakel, RM111,590 from Hatatex, and some RM3 million from Aga Touch.

This article first appeared in The Edge Financial Daily, on Aug 1, 2019.

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