‘ALL IS PROGRESSING WELL’: JHO LOW’S SUPERYACHT SET FOR ‘FINAL SALE’ BY MONTH-END TARGET – WITH HIGH COSTS OF MAINTENANCE SEEN MOTIVATING PUTRAJAYA TO OPT FOR QUICK DEAL

WITH RM15 million already spent on Equanimity’s upkeep, Putrajaya is hoping it can clinch a sale near the US$130 million (RM530 million) sticker price for the 1Malaysia Development Bhd-linked vessel by the March 31 deadline.

The 91m superyacht docked in Langkawi is being maintained by the government at a cost of about RM2 million a month – an unacceptable expense at a time when Putrajaya is struggling with a RM1 trillion debt incurred during the previous Barisan Nasional administration.

Prime Minister Dr Mahathir Mohamad said last year Putrajaya wants to dispose of the ship as soon as possible, citing her high monthly maintenance.

The government said in December it is seeking to sell the vessel privately by March 31 with a guide price of US$130 million.

Lawyers appointed by the government to oversee the judicial sale of the vessel are happy with the progress.

“All is progressing well,” lawyer Sitpah Selvaratnam told The Malaysian Insight. Sitpah was appointed by the Attorney-General’s Chambers to advise the government on the sale of Equanimity.

Last month, government-appointed shipbroker Burgess was reported as saying that up to 20 buyers are interested in the vessel, which boasts a gym, pool, gallery, beauty salon and helipad.

Rupert Nelson, the lead broker for Burgess, said the interested buyers are from the Middle East, Russia and other parts of Asia.

Malaysia took possession of the vessel in August from Indonesia, where the yacht was first seized as part of an asset-recovery operation by the US Department of Justice (DoJ) in its probe into funds stolen from 1MDB.

Prime Minister Dr Mahathir Mohamad touring Equanimity at Port Klang on August 11 last year. The government wants to dispose of the yacht as fast as possible because of her high monthly upkeep. – The Malaysian Insight file pic, March 3, 2019.

Wanted financier Low Taek Jho, also known as Jho Low, bought Equanimity for US$250 million in 2014, allegedly using 1MDB-linked funds.

The DoJ filed a forfeiture action on Equanimity on June 15, 2017, on the basis that Low purchased the yacht with funds stolen and embezzled from 1MDB. American authorities, however, withdrew the forfeiture action on December 21.

The DoJ’s forfeiture withdrawal action acknowledges the finality of the declaration of Equanimity’s ownership by the Malaysian Admiralty Court, said the legal team representing the government in this case.

1MDB lawyer Jeremy Joseph recently said interested parties can approach the government and 1MDB, besides Burgess.

Joseph, who acts for the government as well as 1MDB and two of its subsidiaries – 1MDB Energy Holdings Limited and 1MDB Global Investment Limited – said, however, Burgess remains the exclusive central agent.

“The declaration by the Malaysian Admiralty Court on October 19, 2018, that the Equanimity is owned by the 1MDB companies remains totally unchallenged. It is now clear beyond any doubt that no one has any competing claim to the Equanimity, including Low.”

The lawyer said the judicial sale of the Equanimity by the Malaysian Admiralty Court gives a “clean and clear” title to the purchaser, and is recognised in admiralty jurisdictions around the world.

Equanimity is the 54th largest yacht in the world and is constructed by Netherlands-based custom yacht builder Oceano.

the malaysian insight