Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 9): Datuk Seri Najib Razak’s lawyer said the former Prime Minister will “strongly challenge” the injunction granted by the High Court that effectively freezes his assets.

The ex-parte Mareva injunction, obtained by 1Malaysia Development Bhd (1MDB) and four of its subsidiaries on Tuesday (Feb 8), freezes Najib’s assets in relation to their claim of US$681 million.

The injunction limits Najib’s monthly bank withdrawals to RM100,000.

“He (Najib) will without a doubt strongly challenge the injunction,” Muhammad Farhan Shafee, a member of Najib’s legal team, told The Edge.

Farhan said his firm has received the court order but understands that it has yet to be served on the former premier.

The Edge is given to understand that the injunction applies worldwide and covers only Najib even though other former directors and advisers are also named in the 1MDB suit.

A Mareva injunction is a court order that effectively freezes the assets of the person where legal action is before the court. It is to prevent the transfer of assets that may include money held in banks or financial institutions.

1MDB along with Global Diversified Investment Company Ltd (previously known as 1MDB Global Investment Ltd or 1MDBGIL) and three other units, filed the injunction through Messrs Skrine.

A file search online revealed that the Mareva injunction against Najib only allows him to withdraw RM100,000 monthly from his bank accounts to meet his expenditure or living expenses. Should he require more, he has to apply to 1MDB’s solicitors.

1MDB and its subsidiaries had in May last year filed a multi-billion dollar suit against the former Prime Minister and several other defendants who were former directors or advisers in the company.

1MDB and its subsidiaries claim that US$681 million was misappropriated and transferred to Najib's accounts.

Following Tuesday's Mareva injunction, the court fixed Feb 21 to hear Najib should he contest the injunction

Najib had filed an application to stay the hearing of the 1MDB suit, and that application has been fixed for Friday.

Court documents sighted by The Edge indicate that Najib's conviction in the SRC International Sdn Bhd case — which had him sentenced to 12 years' jail and fined RM210 million — was one of the reasons that prompted 1MDB to apply for the Mareva injunction.

Edited ByS Kanagaraju
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