KUALA LUMPUR (Feb 10): One of the orders stipulated in the Mareva injunction on former prime minister Datuk Seri Najib Razak (pictured) on Tuesday (Feb 8), is that he or his agents, servants or his officers must disclose to 1Malaysia Development Bhd and 1MDB Global Investment Ltd (1MDBGIL) (ie now Global Diversified Investment Company Ltd) his assets in the country or outside to the value of US$681 million (RM2.85 billion).

Thus, the order sighted by theedgemarkets.com showed that Najib must disclose his assets in writing to the two entities' solicitors within 14 days after the Mareva injunction is served on the ex-PM.

Najib, who is also former finance minister, is required to disclose the assets whether it is solely in his own name, or jointly owned with the other defendants (in the claim) and his nominees who may hold the assets on his behalf.

“He is required to give the value, location and details of all such assets and the information must be confirmed in an affidavit which must be served on 1MDB and 1MDBGIL's solicitors within 14 days.

“If the total value free of charges or other securities of Najib's assets in Malaysia exceeds the sum of US$681 million, he may remove any of those assets from Malaysia or dispose or deal with them so long that his assets in Malaysia remain not less than US$681,000,000,” the order states.

The assets listed should be in the form of movable and immovable assets or any other money standing in the bank account.

These are among the orders granted in the Mareva injunction by the High Court on Monday (Feb 7), besides freezing the Pekan Member of Parliament's assets where he or his agents, servants or employees are not allowed to diminish the assets to the value of US$681 million.

On Wednesday (Feb 9), one of Najib's lawyers, Muhammad Farhan Shafee had indicated that while his firm had received the court order, it had yet to be served on the former premier.

Farhan also indicated that Najib will “strongly challenge” the Mareva injunction imposed on him. High Court judicial commissioner Atan Mustaffa Yussof had on Tuesday (Feb 8) fixed Feb 21 for hearing should there be any contest of the order.

Atan Mustaffa granted the Mareva injunction when the ex-parte (one party) application was brought up to him on Tuesday and heard with the supporting affidavit by 1MDB's present director, Mohd Hisyamuddin Awang Abu Bakar.

He is also presiding over the 1MDB, 1MDBGIL and its three subsidiaries' suit against Najib and 14 others for breach of fiduciary duty, among the causes of action.

The companies are claiming that the US$681 million that had been deposited into Najib's AmBank account belonged to 1MDB.

However, despite the order, Najib is allowed to withdraw up to RM100,000 a month from his bank account for his living expenses.

The order also stipulated that should Najib require more than RM100,000 a month in his expenses for his upkeep, he should gain a written approval from the 1MDB and 1MDBGIL solicitors.

“In the event that no written consent is given, the first defendant (Najib) may apply and seek leave (permission) from the court for a sum of more than RM100,00 per month to be allowed for his expenses,” the court order states.

Besides Najib, 14 others are named in the suit that include former 1MDB directors or officers who had served in the company or its subsidiaries.

The legal action by 1MDB and its subsidiaries contended that Najib as former chairman of 1MDB's board of advisers, had approved or facilitated 1MDB and its subsidiaries to enter into sham agreements to create a circuitous trail of money to facilitate or conceal the misappropriation of 1MDB’s funds.

The statement of claim further alleged that he disregarded his obligations under Article 117 (Memorandum of Articles of 1MDB), and abused his powers in exercising his public functions to maliciously commit fraud and misappropriation, which resulted in the fraudulent transfer of funds and losses.

They contended that Najib should have foreseen the losses incurred due to such acts of misappropriation, losses which they said every Malaysian now has to bear.

They also claimed that Najib abused his position in causing further losses, and hence they are entitled to aggravated and exemplary damages because of his actions in obstructing and hindering investigations into the wrongdoings, whereby he obtained secret profits for himself or his agents.

They further alleged that Najib had taken advantage of his position and power to influence, facilitate and cause fraud so that the companies' management complied with his stated intentions that ran contrary to 1MDB’s corporate objectives, national interests and the interests of Minister of Finance Inc, to benefit his stepson Riza Aziz, Jho Low and others.

The Pekan lawmaker who is also on criminal trial for 25 counts of 1MDB-related offences involving abuse of power and money-laundering has sought a stay of the civil suit, which hearing is scheduled for Friday (Feb 11)

Najib, who had already been found guilty with abuse of power, criminal breach of trust and money laundering of RM42 million of SRC funds, had been sentenced by the High Court to 12 years jail and fined RM210 million.

The conviction and sentence had been upheld by the Court of Appeal on Dec 8, and Najib is presently awaiting his final appeal to be heard at the Federal Court. 

Read also:
Najib to ‘strongly challenge’ Mareva injunction freezing his assets
MDB, subsidiaries obtain Mareva injunction to freeze Najib's assets, allows ex-PM to withdraw maximum RM100,000/month from bank accounts
Feb 11 fixed for hearing of Najib's stay application on US$8 bil 1MDB fiduciary suit against him and 14 others