Overview‍ of the ⁤1MDB-PetroSaudi Deal

A joint venture⁢ between 1Malaysia Development Fund (1MDB) and PetroSaudi International (PSI)⁤ in 2009 resulted in the alleged misappropriation of US$1.83‍ billion, according ⁤to court findings. The deal initially involved 1MDB contributing 40% of the investment, with PetroSaudi Holdings (Cayman) Ltd. responsible for the remaining 60%. However, only US$300 million of the promised investment reached the joint venture.

The remaining US$700 million⁤ was allegedly diverted to Good Star ⁤Ltd., a company linked to Malaysian financier Jho Low‌ (Low Taek Jho). At the time,Good Star was falsely presented as part of the PetroSaudi group.

Swiss‍ Court conviction and Sentencing

On ⁣August 2024, the Swiss ⁤Federal Criminal⁤ Court⁢ found PetroSaudi International executives, Khadem Abdulla ⁢Al-Qubaisi (Obaid) and patrick Mahony, guilty of deceiving the 1MDB board. Both were convicted on ‌charges‍ of fraud, criminal mismanagement, and money laundering related to the US$1.8⁢ billion loss.

Obaid received a seven-year ​jail sentence, while Mahony was sentenced to six ⁣years. ⁣The court also ordered them to repay US$1.75 billion to 1MDB, though both men have filed appeals against the verdict. Reuters reported on ​the Swiss court’s decision.

Recent Asset ‌Freezes ⁤and Ongoing Legal Battles

This latest legal ‍action follows a⁣ Malaysian High Court ruling in March 2024, which prohibited⁢ Obaid and two firms from accessing 41 pieces of jewelry valued at approximately £9 million ​(approximately US$11.4 million as of October 3, 2025).The Edge malaysia detailed the asset freeze.

Obaid, a​ Saudi citizen, continues to⁤ be named as ⁢a defendant in several ongoing civil suits related to 1MDB ⁣in Malaysia.

Key Players