Arbitration & ADR

Malaysia to file legal challenge in London High Court to set aside Consent Award

Date: 30 October 2018; Type: Legal News; Source: Bernama

KUALA LUMPUR, Oct 30 (Bernama) - The Government of Malaysia will be filing an application at the High Court in London to set aside a Consent Award by an Arbitration Tribunal which obliged the government to pay US$5.78 billion to International Petroleum Investment Company (IPIC). Attorney-General Tommy Thomas in a statement today said the legal challenge will be filed today on the basis that the Consent Award was procured by fraud or in a manner contrary to public policy.

“We are confident that we have a strong case,” he said.

He explained that the application related to the knowledge of IPIC and Aabar Investments PJS of the serious allegations made by the United States Department of Justice (DOJ) against former Prime Minister and Finance Minister Datuk Seri Najib Tun Razak, who was also the moving spirit and ultimate decision maker in 1Malaysia Development Berhad (1MDB).

“Such knowledge on their part was acquired, “inter alia”, no later than the time when the DOJ’s Press Conference was held by the Attorney-General of the United States, Loretta Lynch, in July 2016 when she announced the filing by DOJ of several civil suits for the freezing of assets purchased by fraudsters from stolen proceeds, and popularly described as the greatest kleptocracy in modern history.

“The grave, detailed allegations in those DOJ court documents were given tremendous global publicity, particularly in the political and business media. They had certainly entered the global public domain by July 2016,” he said.

Thomas said Najib was identified as “MO1” in the DOJ pleadings and any reasonable reader reading these court documents would immediately become aware of his central role in defrauding 1MDB to the benefit of himself, his stepson and Malaysian businessman Jho Low who is wanted by Malaysia in connection with the 1MDB scandal.

“In such circumstances, Malaysia takes the position that IPIC and Aabar were aware of the fraud of Najib Razak. He was principally responsible for 1MDB and Minister of Finance Inc. consenting to the Award.

“Every system of law would hold that he could not possibly have acted in the best interests of his country and his company. Indeed, he did not. Fraud is an established ground to challenge the consent award for public policy reasons.

“We are pleased to report that the application will be filed today in the High Court in London. Malaysia will claim that as a result of the fraud, we are relieved from any obligation to pay the balance of the US$4.32 billion to IPIC or Aabar under the Consent Award, and additionally have a right to recover the US$1.46 billion already paid,” he said.

Thomas said the Arbitration, conducted under the Rules of the London Court of International Arbitration, was between IPIC and Aabar Investments PJS, as claimants, and 1Malaysia Development Berhad and Minister of Finance Inc. as respondents.

He said under the Consent Award, Malaysia was obliged to pay US$5.78 billion to IPIC and the Bond Trustee over a five year period.

“So far, US$1.46 billion has been paid, leaving a balance of US$4.32 billion, with the next interest payment of US$50 million due on 11 th November 2018. Similar interest payments are payable periodically until April 2022. The final bullet payments, representing principal and interest of US$1.8 billion each, are due and payable in May and October 2022,” he said.

MY Bernama

Asean LIP works with Bernama to bring you the latest Malaysian legal news. Bernama is the national news agency of Malaysia. You shall not reproduce the above/ attached materials in whole or in part without the prior written consent of the Publishers and/or Bernama. Neither the Publishers nor Bernama will be liable for any loss, injury, claim, liability, or damage caused directly, indirectly or incidentally to errors in or omissions from the above/ attached materials. The Publishers and Bernama also disclaim and exclude all liabilities in respect of anything done or omitted to be done in reliance upon the whole or any part of the above/attached materials. The access to, and the use of, Asean LIP and contents herein are subject to the Terms of Use.

Get ASEAN LAW ALERT

Legal updates by e-mail. It's Free.

INDUSTRY UPDATES

Government plans to build New Shah Alam Court Complex - Liew

SHAH ALAM, Jun 24 (Bernama) - The government plans to build a new Court Complex in Shah Alam to replace the existing building, said Minister in the Prime Minister’s Department Datuk Liew Vui Keong.

Read More

INDUSTRY UPDATES

Niosh offers free needs Analyses for Sabah and Labuan Workplaces

KOTA KINABALU, Jun 24 (Bernama) - The National Institute of Occupational Safety and Health (NIOSH) stands ready to conduct free needs analyses of workplace safety for organisations in Sabah and the Federal Territory of Labuan, with the aim of identifying appropriate training required.

Read More

INDUSTRY UPDATES

Ministry launches Sexual Predation Awareness Campaign

PUTRAJAYA, Jun 24 (Bernama) - The Women, Family and Community Development Ministry today launched a sexual predation awareness campaign via digital medium Youtube.

Read More

INDUSTRY UPDATES

MyCC to focus Efforts on Monitoring Cement Industry

KUALA LUMPUR, Jun 19 (Bernama) - The Malaysia Competition Commission (MyCC) says it will focus its efforts on consistently monitoring the cement industry in order to complement the government’s initiative in protecting the welfare of consumers.

Read More

INDUSTRY UPDATES

Amended Code did not affect Conflict of Interest - Witness

KUALA LUMPUR, Jun 18 (Bernama) - The Code of Ethics for Administration Members and Members of Parliament was amended by the Cabinet in 2013 but did not affect the conflict of interest provision, according to a Cabinet former deputy secretary-general (Constitution and Communication).

Read More

INDUSTRY UPDATES

Court urges Johor PTG to meet Orang Asli to settle Compensation Issue

JOHOR BAHRU, Jun 18 (Bernama) - The High Court here today encouraged the state Land and Mines Office (PTG) to engage in discussions with the Seletar tribe Orang Asli of Kuala Masai with the aim of settling compensation due as a result of wrongful acquisition of their land in Stulang Laut.

Read More

INDUSTRY UPDATES

Ex-CJ speaks out against Lawyers' Tendency to seek Postponements

KUALA LUMPUR, Jun 16 (Bernama) - Former Chief Justice Tun Zaki Azmi has spoken out against the tendency by certain defence lawyers to seek postponements of cases being heard in court.

Read More

INDUSTRY UPDATES

RCI on Judicial Misconduct is what People Want - Dr Mahathir

PUTRAJAYA, Jun 5 (Bernama) - The government agreed to set up a Royal Commission of Inquiry (RCI) on judicial misconduct because this is what the people want, said Prime Minister Tun Dr Mahathir Mohamad.

Read More

INDUSTRY UPDATES

Complaints via Whatsapp: RTD issues More than 200 Notices

KUALA LUMPUR, June 3 (Bernama) - More than 200 notices have been issued by the Road Transport Department (RTD) as result of consumer complaints via the Whatsapp application during the three days enforcement operation, in conjunction with Adilfitri, which began on May 29.

Read More

INDUSTRY UPDATES

Online Trader benefits from Industrial Revolution 4.0

KOTA BHARU, Jun 2 (Bernama) - The Industry Revolution 4.0, which is occurring all over the world, has given huge benefit to online traders in marketing their products to consumers.

Read More

INDUSTRY UPDATES

Mohd Roze Shaari is New Intelligence/Operations Deputy Director

KUALA LUMPUR, June 1 (Bernama) - Bukit Aman's Criminal Investigation Department (CID) has a new Intelligence/Operations deputy director.

Read More

INDUSTRY UPDATES

Give Mandatory Counselling, Community Service Sessions to Road Bullies - MCPF

KUALA LUMPUR, May 31 (Bernama) - The Malaysian Crime Prevention Foundation (MCPF) has suggested that compulsory counselling and community service sessions be meted out to individuals detained for dangerous driving and road rage.

Read More

INDUSTRY UPDATES

Samirah allowed to be released on RM500,000 Bail pending Trial

PUTRAJAYA, May 28 (Bernama) - The Federal Court today allowed Samirah Muzaffar, the wife of the late Cradle Fund chief executive officer Nazrin Hassan to be released on bail of RM500,000 with two sureties pending her murder trial.

Read More

INDUSTRY UPDATES

Adib Inquest: Lawyer withdraws

SHAH ALAM, May 27 (Bernama) - The lawyer who represented the Housing and Local Government Ministry, Fire and Rescue Department and family of firefighter Muhammad Adib Mohd Kassim in the inquest into the latter's death withdrew from the case today.

Read More

INDUSTRY UPDATES

Sabah Syariah Court Complex 45 percent completed, ready by May 2020

KOTA KINABALU, May 27 (Bernama) - The new Kota Kinabalu Syariah Court Complex is 45 percent completed and is expected to be fully operational by May 2020, said Deputy Secretary-General (Senior) in the Prime Minister’s Department, Datuk Hasnol Zam Zam Ahmad.

Read More