Why did Putrajaya seek to freeze RM1.45 billion in UK funds?

Question

Accepted Answer

Putrajaya Sought to Freeze UK Funds to Prevent Dispersal of Proceeds Linked to a Wanted Individual

Putrajaya sought an interim preservation order over funds exceeding US$340 million (RM1.45 billion) held in a UK trust account to prevent the dispersal of these monies. The government's application was based on the grounds that one of the beneficiaries of these funds is an individual wanted by Malaysian authorities. The primary objective was to maintain the status quo of the funds, as their dispersion would make recovery difficult.
Preservation Order Granted Against Key Respondents

The interim preservation order was granted by High Court Judge Mohd Nazlan Mohd Ghazali against respondents including Tarek Obaid, PetroSaudi International Ltd, PetroSaudi Oil Services (Venezuela) Ltd, the law firm Clyde and Co, and Temple Fiduciary Services Limited. The court's authority to issue this order was derived from Section 53 of the Anti-Money Laundering Act.
Funds Linked to Arbitration Award Settlement

The government's intention was to freeze a portion of an award settlement stemming from arbitration proceedings between PetroSaudi Oil Services (Venezuela) and Petróleos de Venezuela. The specific amount targeted by the order is US$340,258,246.87.
Tarek Obaid Identified as a Beneficiary

Tarek Obaid, identified as a co-founder of PetroSaudi International Ltd, is stated to own accounts under Temple Fiduciary Services. The application for the prohibition order was prompted by the fact that Tarek Obaid is a person wanted by Malaysian authorities, making him a beneficiary of the funds in question.
Funds Held in Escrow by Clyde and Co

The monies are currently held by the UK-based legal firm Clyde and Co, which was appointed as an escrow agent for the arbitration proceedings. The total amount held in this escrow account is US$500 million (RM2.13 billion), and the government sought to preserve a significant portion of this sum.
Application Aims to Maintain Status Quo

The government's application was filed to maintain the status quo of the money within the accounts. It was argued that once the monies are released and dispersed to the beneficiaries, it would be exceedingly difficult, if not impossible, for the authorities to recover them.
Full Hearing Scheduled for August 28

Following the granting of the interim preservation order, the full hearing for the application has been scheduled for August 28. This date allows both parties adequate time to prepare and submit their respective written arguments to the court.

Reading history

Hide →

This history is cleared when the page is closed.

Why did Putrajaya seek to freeze RM1.45 billion in UK funds?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends