1MDB asset forfeiture: High Court issues temporary order to stop fund movement from Tarek Obaid, four others

KUALA LUMPUR (July 16): The High Court here had today issued an ad-interim (temporary) order barring Tarek Obaid, PetroSaudi Oil Services (Venezuela) Ltd and three others from moving US$340.26 million (RM1.45 billion) to other entities because the money is alleged to be linked to 1Malaysia Development Bhd (1MDB).

The temporary prohibition order will last until the disposal of an asset forfeiture application by the Malaysian government.

Besides Tarek and PetroSaudi Oil Services (Venezuela), others named in the asset forfeiture exercise are PetroSaudi International Ltd, Clyde & Co LLP and Temple Fiduciary Services Ltd.

High Court judge Mohd Nazlan Mohd Ghazali granted the ad-interim order after deputy public prosecutors (DPPs) Budiman Lutfi Mohamed and Muhammad Izzat Fauzan applied for the order to bar Tarek, PetroSaudi Oil Services (Venezuela) and the three others from moving the money.

The DPPs applied for the ad-interim order today following an arbitration decision on Friday in London where the arbitrator ruled in favour of PetroSaudi Oil Services (Venezuela).

In Malaysia today, Tarek's lawyer Datuk Mohd Yusof Zainal Abiden and PetroSaudi Oil Services (Venezuela)'s lawyer Alex Tan told the High Court they will oppose the Malaysian government's asset forfeiture application.

Budiman said if the ad-interim order was not given, it would render the Malaysian government's asset forfeiture application academic as Tarek and PetroSaudi Oil Services (Venezuela)'s application to oppose the forfeiture would be heard only next month.

Justice Mohd Nazlan granted the ad-interim order after hearing submissions from the DPPs besides Tarek and PetroSaudi Oil Services (Venezuela)'s lawyers.

The judge said: "The court has the jurisdiction to grant an interim preservation order which I now grant which will be enforced until the disposal of the main application."

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