KUALA LUMPUR (May 21): High Court Judicial Commissioner Liza Chan Sow Keng will hear 1Malaysia Development Bhd’s (1MDB) lawsuit against law firm Wong and Partners and its partner Brian Chia Hock Gee besides another case involving 1MDB’s former subsidiary SRC International Sdn Bhd's legal action against ex-prime minister Datuk Seri Najib Razak and six others.
This follows the first case management for both cases before High Court deputy registrar Siti Aisyah Ahmad via e-review today.
According to information derived from the court's filing system, Chan will hear both cases on June 1, 2021. The 1MDB and SRC hearings have been fixed at 10am and 11am respectively on that day.
The Edge, citing court documents, reported on May 10, 2021 that 1MDB filed a claim against Wong & Partners and Chia for a sum of US$1 billion (about RM4.14 billion) and payment of legal fees of RM664,821.21 due to the firm and Chia’s alleged roles in the 1MDB scandal.
On May 11, 2021, news reports, quoting Wong & Partners’ statement, indicated the legal firm said it is "very disappointed" by 1MDB’s decision to file a civil suit against the firm for what Wong & Partners’ claim is advisory work in relation to 1MDB.
Meanwhile, SRC's RM4 billion lawsuit involves Najib and six others, comprising SRC’s former board members Tan Sri Ismee Ismail, Nik Faisal Ariff Kamil, Datuk Suboh Md Yassin, Datuk Che Abdullah @ Rashidi Che Omar and Datuk Mohammed Azhar Osman Khairuddin besides ex-1MDB CEO Datuk Shahrol Azral Ibrahim Halmi.
The Edge, citing court documents, reported on May 10, 2021 that SRC had filed the lawsuits against them on May 7, 2021.
It was reported that the writ sighted by The Edge stated that in January 2019, SRC was placed under new management under the Ministry of Finance (MoF) and thereafter it discovered that the former board of directors did not take any reasonable steps on the proper use of the RM4 billion Retirement Fund (Incorporated) (KWAP) loans, given in 2011 and 2012, for its general investment capacities and working capital.
It was reported that the writ alleged that the defendants, including Najib, failed to monitor the disposal of RM3.6 billion to SRC BVI, which was appointed to undertake overseas investment activities in the energy resource sector.
According to the news report, SRC alleged that the defendants failed to ascertain and monitor repayments under the KWAP loan schedule as required and inquire about the misappropriation of funds.
"The new management, as mentioned in the writ, discovered a significant number of fraudulent and wrongful disbursements, transfers and utilisation of KWAP's RM4 billion loans.
"It (the new management) also discovered that the utilisation of funds was against the nature and business SRC was set up for and incorporated, and the board did not perform due diligence and acted contrary to Bank Negara Malaysia's requirements.
"For this, they are seeking declaration that Najib and the former directors named as defendants are jointly and severally liable to be accountable to SRC as constructive trustees on the grounds of the fraudulent breach of duties, fraudulent breach of trust and breach of trust, and hence an order for all of them to compensate the company.
"They are also alleged to have committed breach of trust, conspiracy, knowing receipt, dishonest assistance, wrongful conversion, abuse of power and misfeasance in public office, resulting in a loss of US$1.15 billion or the RM4 billion,” The Edge reported.