The High Court in Kuala Lumpur today dismissed an application by Prime Minister Najib Abdul Razak, 1MDB and the government to strike out a suit filed by a group of Pakatan Harapan Youth leaders who are challenging the payment made to International Petroleum Investment Company (IPIC).
Justice Hue Siew Kheng said the youths from Gerakan Anak Muda Tolak Najib (GANT1) have the locus standi (legal standing) to initiate the suit as concerned citizens, based on Second Finance Minister Johari Abdul Ghani's statement on Aug 1, 2016, that Malaysia would contest IPIC's claim in the Court of International Arbitration.
Their lawyer Haniff Khatri Abdulla said in less than a year after the statement, 1MDB had agreed, after a mediation, to pay IPIC via two tranches.
“Hence, the judge felt that the defendants failed to give sufficient materials before this court on why it happened and that there was an arguable case which required further explanation in a trial,” he told reporters after the decision was made in chambers.
Following this, Haniff said Najib, 1MDB and the government have been ordered by Hue to file their defence before the end of this month and fixed a case management on Jan 30.
The judge also rejected an oral application by Najib's lawyer Mohd Hafarizam Harun and 1MDB's lawyer Tan Hock Chuan for a stay in filing the defence.
Hafarizam indicated that he would file an appeal against today's decision at the Court of Appeal, and also on the stay which was not granted.
GANT1 had filed the suit in July to stop the payments to IPIC.
Prior to this, all 1MDB-related suits filed by politicians, including former premier Dr Mahathir Mohamad, Anina Saadudin and Khairuddin Abu Hassan, and separately by Zaid Ibrahim and Tony Pua, had been dismissed by three High Courts last year.
Lawyer Tan Hock Chuan who appeared for 1MDB told Malaysiakini that he would seek instructions from his client on whether to appeal. Senior Federal Counsel Alice Loke appeared for the government.
IPIC first sued 1MDB at the arbitration tribunal in London in 2016, demanding US$6.5 billion while claiming that 1MDB had failed to deliver on its responsibilities.
1MDB has to date paid up US$1.2 billion.
The group of Pakatan Harapan Youth had filed the suit in July seeking an injunction to stop the payments to IPIC.
Their suit sought a declaration that the arbitration agreement agreed between IPIC and Aabar Investment PJS on May 11 last year be declared null and void.
They also want the details of the payment to IPIC and Aabar Investments PJS be revealed to them.
The movement also wants a declaration that if Najib, 1MDB, and government are found to be liable for excess payment to IPIC, then this amount is to be returned to a special fund.
The group also sought that they be at liberty to file committal proceedings against Najib, 1MDB and the government if they are found to be liable.
Prior to this, all suits related to 1MDB filed by politicians and activists including those by former premier Dr Mahathir Mohamad, Khairuddin Abu Hassan, Zaid Ibrahim and Tony Pua had been struck out by the high courts.
Justice Hue is also presiding over Najib's suit against PAS organ Harakah for which she ordered the matter to go to trial and not through summary judgment.
She was also the judge in the suit brought by the family of the late private investigator P Balasubramaniam against Najib, his wife Rosmah Mansor and seven others over Mongolian model Altantuya Shaariibuu's death.
In that suit, she had dismissed the striking out application filed by Najib and the others against the widow and her children.- Mkini
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