Lawyer: Ex-opposition youth leaders may withdraw suit over IPIC

This follows the Pakatan Harapan government's proactive steps to investigate the 1MDB fiasco and recover the money, says Mohamed Haniff Khatri Abdulla.

Lawyer Mohamed Haniff Khatri Abdulla.

PETALING JAYA: A suit brought by a group of former youth opposition leaders against ex-prime minister Najib Razak and state investor 1MDB may be abandoned as Putrajaya is taking steps to act against those who broke the law, a lawyer says.

Mohamed Haniff Khatri Abdulla said there was no practical reason to maintain the action following the change in government in the historic May 9 general election.

“Najib has been charged with criminal breach of trust and abuse of power over the RM42 million SRC International money found in his bank account,” he said.

Moreover, he said, the new Pakatan Harapan government had revived a special task force to assist the police and the Malaysian Anti-Corruption Commission in their investigations into 1MDB.

“The new 1MDB board is also taking legal action to recover 1MDB funds from anyone directly involved in the scandal,” he told FMT.

The Federal Court is scheduled to hear a leave to appeal application by the leaders, identified as Gerakan Anakmuda Tolak Najib (Ganti), on Aug 13.

Haniff said he would take his clients’ instructions based on recent developments.

He said Ganti filed the suit last year to bring the matter to court due to the inaction of the authorities at the time.

Ganti brought a class action against Najib, the Malaysian government and 1MDB for paying US$1.2 billion (RM4.75 billion) to Abu Dhabi-based International Petroleum Investment Company (IPIC).

On Jan 9, High Court judge Hue Siew Kheng dismissed applications by Najib, the government and 1MDB to annul the suit on grounds that the youth leaders had the legal standing to bring the suit as the payment involved public funds.

The judge also held that the litigants had an arguable case and that the matter must go to trial.

Ganti sought a court order that the settlement agreement on May 11, 2016, between IPIC and 1MDB at the London International Court of Arbitration be declared invalid.

On March 26, the Court of Appeal threw out the suit, saying Ganti did not have the legal standing to file it against the three appellants.

A three-member bench chaired by Ahmadi Asnawi held that there was also no contract between the parties (Ganti) and the appellants (Najib, the government and 1MDB). -FMT