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Kuala Lumpur, Malaysia – The Malaysian High Court has issued an order preventing PetroSaudi International Ltd (PSI) and its director, Tarek Obaid, from accessing or dealing with 2.5 million shares in palantir Technologies, a US-based software company.The ruling, made on October 3, 2024, stems from an application by Malaysian prosecutors under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
Judge Datuk Azhar Abdul Hamid granted the ex-parte application, also naming Palantir as a party to the order, according to reporting by The New Straits Times. Prosecutors argued the move was necessary in relation to ongoing investigations linked to the 1Malaysia Development Fund (1MDB) scandal.
Background: The 1MDB Scandal
The 1MDB scandal revolves around allegations that billions of dollars were misappropriated from the Malaysian sovereign wealth fund, 1Malaysia Development Fund (1MDB). Investigations have revealed a complex web of transactions and individuals allegedly involved in diverting funds for personal gain.The scandal has led to criminal charges and civil lawsuits in multiple countries, including the United States, Singapore, and Malaysia.
PetroSaudi International Ltd. played a central role in some of the disputed transactions. In 2015, 1MDB entered into a joint venture with PSI, ostensibly to develop a petrochemical project. However, investigations suggest that funds were diverted from this venture.
Previous Rulings and Ongoing Legal battles
This latest asset freeze builds upon previous rulings in the case. In March 2024, the Malaysian High Court barred Obaid and two firms from dealing with 41 pieces of jewelry valued at approximately £9 million (roughly $11.3 million USD as of October 3, 2024).Reuters reported on this earlier ruling.
Obaid, a Saudi citizen, remains a defendant in several ongoing civil suits in Malaysia related to 1MDB. Thes suits seek to recover assets allegedly misappropriated from the fund. The US Department of Justice has also pursued asset forfeiture cases related to 1MDB, targeting properties and assets acquired with allegedly stolen funds.
Here’s a timeline of key events:
| date | Event |
|---|---|
| 2015 | 1MDB enters joint venture with PetroSaudi International Ltd. |