A London judge allowed the Malaysian government to proceed with a challenge against a previous settlement with an Abu Dhabi sovereign wealth fund regarding the 1MDB affair.
Bloomberg last night reported that judge Andrew Baker greenlighted an extension of time for the claim to be properly served so that the “unusual” case can be heard in full trial.
He ruled that Malaysian state-owned 1MDB could commence with the challenge against the 2017 consent award by a London Court of International Arbitration (LCIA) involving Abu Dhabi’s International Petroleum Investment Company (IPIC), despite it being filed 511 days after the statutory deadline.
“That is no doubt this is an exceptional length of extension to grant, but this is an exceptional case,” he said through the ruling which made no final finding of fact over the matter.
In challenging the arbitration, Putrajaya alleged that the settlement was invalid when signed as IPIC and Aabar Investments were aware of fraud claims against then Malaysian prime minister Najib Abdul Razak.
1MDB was a sovereign wealth fund with the stated aim of developing Malaysia’s economy. Instead, much of its funds were purportedly embezzled by entities linked to Najib.
Legal tussle
The London court case is among the numerous 1MDB-linked legal and regulatory probes worldwide, including the United States and Malaysia.
Both sides are locked in a legal tussle in London courts, with court filings alleging that IPIC and Aabar had colluded in the 1MDB fraud.
If the Malaysian government succeeds at trial, it would be able to further pursue these claims in court.
“This result will finally allow the commercial court to fully scrutinise important aspects of the 1MDB fraud as part of an open and transparent process,” Richard Little, a lawyer from Eversheds Sutherland who acts for the Malaysian sovereign wealth fund and the country’s finance minister, reportedly said.
Lawyers for IPIC and Aabar Investments at Clifford Chance were reported to have declined to comment over the matter.
On Aug 24, 2020, Singapore-based Straits Times reported that then defence minister Hishammuddin Hussein would head to Dubai, the United Arab Emirates (UAE), to allegedly try resolve the 1MDB-IPIC dispute.
On Feb 8, it was reported that Hishammuddin paid a working visit to Abu Dhabi, UAE, as the 1MDB-IPIC cloud loomed. - Mkini
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