KUALA LUMPUR, Dec 23 — The High Court has allowed the government’s application to extend a prohibition preventing PetroSaudi International Ltd (PSI) and its director Tarek Obaid from dealing with US$340 million (RM1.61 billion) linked to 1Malaysia Development Berhad (1MDB).
The funds, which the government claims are connected to the 1MDB scandal, are currently held in a client account at Clyde & Co LLP in the United Kingdom on behalf of PetroSaudi Oil Services (Venezuela) (PSOS-VZ).
PSOS-VZ is a subsidiary of PetroSaudi Oil Services Ltd (PSOSL), which is a unit of PSI co-founded by Obaid.
High Court Judge Noor Ruwena Mohd Nurdin granted the application filed by Deputy Public Prosecutor (DPP) Mahadi Abdul Jumaat through a notice dated December 5, thereby extending the prohibition period.
“I take into account the objection raised by the respondent (Obaid), as this matter has been ongoing for a long time. However, I also take into account the public interest. The court must strike a balance and allow some time for the prosecution to wrap up its case.
“The court grants an extension of three months from today,” she said, extending the prohibition until March 23, 2026.
The restraining order was initially granted by the High Court on December 11 last year, and expired on December 10.
During today’s proceedings, Mahadi was assisted by DPPs Nidzuwan Abd Latip and Nurul Izzati Sapifee. Lawyer Datuk Mohd Yusof Zainal Abiden represented Obaid, while lawyer Alex Tan appeared for PSI and PSOS-VZ. There was no representative for Clyde & Co.
In 2020, the court allowed the government’s application for an interim order to prevent the parties from transferring funds linked to 1MDB, directing that the money be kept in an escrow account held by the law firm.
The interim order was intended to preserve the status quo pending the government’s application for an injunction prohibiting any dealings involving funds belonging to PSI and PSOS-VZ.
Putrajaya claims the money originated from 1MDB funds invested in a joint venture with PSI to establish 1MDB PetroSaudi Ltd in 2010.
The application was filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act 2001.
In August 2024, international media reported that the Swiss Federal Criminal Court convicted Obaid of offences related to the embezzlement of US$1.8 billion (RM7.32 billion) from 1MDB and sentenced him to seven years’ imprisonment.
