Khairuddin drops pink diamond suit against 1MDB

Two court cases against 1MDB were dropped today following the company's pledge to take remedial steps and address any loss it has suffered.

Former Umno division leader Khairuddin Abu Hassan, who is now with Parti Amanah Negara, withdrew his pink diamond suit against 1MDB, Rosmah Mansor and Low Taek Jho today after receiving a letter from the company's new lawyers.

Khairuddin's senior lawyer Gopal Sri Ram told Malaysiakini that the letter stated that 1MDB had appointed solicitors from Lee Hishammuddin Allen and Gledhill to represent the company.

The letter indicated that the company's newly appointed executive committee will be pursuing claims against entities and individuals who have caused loss and damage to 1MDB.

Sri Ram said that as this is in contrary to the company’s previous stand of not wanting to take action, Khairuddin decided to withdraw this litigation made on behalf of the public.

Khairuddin was represented by Damien Chan in today's proceedings, while Yazed Mustakim appeared for Rosmah, Najib and Ahmad Zahid.

The withdrawal was recorded before Kuala Lumpur High Court judge Justice Ahmad Zaidi Ibrahim, who made no order as to costs.

It was previously reported that Messrs Tan Hock Chuan had withdrawn itself from representing 1MDB in the suit.

Khairuddin had filed the suit filed over a 22-carat pink diamond, said to be worth US$23.7 million and a pink necklace which is estimated to be worth US$4.3 million.

In his suit, he wanted Rosmah and Jho Low to return the jewellery allegedly bought with siphoned 1MDB funds back to the company as well as pay compensation to 1MDB over the money they had allegedly taken.

Khairuddin has also withdrawn his suit against former premier Najib Abdul Razak and his former deputy Ahmad Zahid Hamidi for breaking their oath of office by claiming the  RM2.6 billion transferred to Najib’s bank accounts was from an Arab donor.

On Najib and Ahmad Zahid, Khairuddin had indicated of dropping his suit earlier.

Meanwhile, former PKR Youth chief Ezam Md Noor (photo below) has instructed his lawyer Farez Jinnah to withdraw his ongoing suit and appeal against former prime minister Najib Abdul Razak and 1MDB's board of directors.

This also follows a letter he received from 1MDB's new lawyers.

In the letter sighted by Malaysiakini, it was pointed out that 1MDB has appointed a new executive committee comprising Mohammad Faiz Azmi, Rashidah Mohd Sies and Mohd Fadzmi Wan Othman to manage its day-to-day operations.

"I pray and hope the new management team in 1MDB would from now on take the endeavour to (deliver) a meaningful closure to the 1MDB debacle.

"I instructed Farez to withdraw my suit and would like to render my thanks to him and his legal team. A special mention for Gopal Sri Ram for acting as counsel for two years in this case," Ezam said in a statement.

His US$3.66 billion suit had claimed that Najib, nine former 1MDB directors, five present directors and the government had breached their fiduciary duties.

He also accused them of intentionally causing “wrongful losses” of US$3.66 billion for 1MDB, a sum based on the US$1.03 billion transferred to Good Star Ltd and used for a joint venture with PetroSaudi International Ltd, the US$1.367 billion paid to Aabar BVI and US$1.26 billion paid to Tanore Finance Corporation.

Ezam said he filed the suit in his personal capacity as a taxpayer and to represent all Malaysians, and pledged to return the damages to 1MDB and the government if the court ruled in his favour.

However, last April, Kuala Lumpur High Court judge Nik Hasmat Nik Mohamad, struck out Ezam's suit, ruling that he had no right to initiate the suit on behalf of Malaysians as he was not a director, shareholder or had any interest in 1MDB.

Justice Nik Hasmat said (then) attorney-general Mohamed Apandi Ali had cleared Najib and that the MACC also issued a statement regarding this in January 2016.

As a result, Ezam filed an appeal with the Court of Appeal. - Mkini