THE Equanimity is now docked at Pulau Indah, Port Klang. This super luxury yacht has sailed from anonymity to centre stage in the continuing saga of 1MDB, courting controversy even before dropping anchor. It is now “under arrest”.
The appointment of a consultant from the former legal firm of Tommy Thomas, the sitting Attorney General, has raised eyebrows on purported “conflict of interest”, notwithstanding the said consultant’s impeccable credentials in Admiralty Law.
The AG has come out to clarify that the decision to appoint was his alone and based on probity considerations. It appears that trust and integrity are also worrisome issues in the legal fraternity.
It must be noted that the propensity to appoint past colleagues and preferred persons to positions of influence is a natural human reaction and already practised at the highest levels.
It is heartening to hear that the services of the said consultant are free while the other members of the legal team, who are themselves standard bearers on shipping litigation in this country, will be paid on commercial terms. This is good to hear as a contract is void if there is no monetary consideration. There may also arise ambiguity on who is in charge.
The magnanimity shown in offering free services is laudable. Also, the magnanimity shown by Indonesia in handing over the yacht and the United States (which had been thanked by Malaysia) for their roles in this episode should be noted.
One must take into cognizance the fact that a US District judge had, in May 2018, ordered Low Taek Jho (Jho Low) to hand over the 300ft vessel to the US so it could be sailed from Indonesia and sold. Apparently, lawyers who represent the companies that hold the title to the yacht have asked a federal judge in Los Angeles to order the Department of Justice to provide a “thorough clarification” on whether US agencies or officials knew in advance or were involved in transferring the Equanimity to Malaysia. This is a revelation. The games have begun.
It is the height of naivety not to believe that over time, either or both of these countries will look at reciprocity when contentious regional issues surface. Malaysia will be obliged and constrained in its options, and its alignment in world politics is a point to consider.
It brings to mind the infamous, arrogant and spectacular walkout at a dinner hosted by the then Malaysian Prime Minister by a US vice-president and his delegation in the late 1990s at the height of the Reformasi movement. It appears that the then “slap in the face” is now a “pat on the back”! The irony is that it involves the same Malaysian leader!
It appears that simplicity is not the order of the day for the Equanimity. In fact, it is a matter of some complexity as evidenced by the AG’s comment that the transactions involved in the case were intricate and the corporate deals carried out by Low and his advisers were layered to hide the true source of funds used to purchase the yacht, “drafting the legal papers required skill and expertise in shipping law and corporate law”.
In addition, the real test of “experience and expertise” would come into play if and when Low or any other party applies to set aside the warrant of arrest. The arguments would then be vigorously put forward by all sides when the court hears the matter on its merits, and it is critical that Malaysia has the best barristers. Litigation is dynamic and unpredictable events occur in court.
In the meantime, a ship manager has to be appointed and all charges borne till the entity is sold. Estimates of charges vary, with some as high as RM3mil per month!
Of concern is the financial veracity of the claims made by the current management of 1MDB on misappropriation or fraud, given that the key players, namely Low and other key persons at 1MDB responsible for financial management, are still at large. Not much has surfaced in a Malaysian court for the obligatory hearings from the parties affected. Currently, it appears to be conjecture and a fair amount of hearsay, depending on which side of the political divide one is on.
The layman could not be faulted for believing that all one needs is to obtain judgement in default and just sell the yacht to recover monies allegedly misappropriated at 1MDB.
It would be a shame if the proceeds of Tabung Harapan or government funds have to be diverted for the upkeep of this beauty as it now has no known sources of income. We are in for the long haul although one hopes for speedy resolution.
The Equanimity should not test the sensibilities of the rakyat, namely on probity and accountability, as they already have numerous issues to contend with, including abolition of tolls, political theatrics on GST trust fund reimbursements, colour of school shoes, possible higher prices with SST, minimum wages, stewardess’ uniforms and LGBT.
Responsibility for the Equanimity continues to unfold new developments which may spring more surprises. It should be resolved with objectivity. And, hopefully, taxpayers’ money will not be put to waste in resolving the issue.
WRITER: WALTER SANDOSAM
– ANN
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