KUALA LUMPUR: The US$346mil lawsuit filed by 1Malaysia Development Bhd (1MDB) against Datin Seri Rosmah Mansor over the alleged purchase of luxury goods using 1MDB monies will be heard before a different judge.
This is following Judicial Commissioner Leong Wai Hong allowing Rosmah’s application to recuse him from presiding over the case.
In a brief decision yesterday, Leong said he recused himself on the principle of justice.
In Rosmah’s supporting affidavit, she stated that the judicial commissioner was a partner and head of litigation and arbitration at law firm Messrs Skrine between 2011 and 2021.
Rosmah contended that at the material time at Skrine, which acted for the plaintiff in the present case, the law firm had relations to lawsuits including investigation into 1MDB and her husband, Datuk Seri Najib Razak, who was the prime minister then.
“After considering the application, I agree to recuse myself from hearing this suit on the principle that justice must not only be done but must also be seen to be done.
“In the premise, I allow the application. This suit will be heard before another High Court judge,” Leong said.
This is the second time Rosmah applied for the recusal of the judge in the lawsuit.
She, however, failed in her first recusal application.
On Sept 9, High Court judge Justice Adlin Abdul Majid dismissed Rosmah’s recusal application, stating that Rosmah failed to prove any real danger of bias if she continues to preside over the civil suit.
Justice Adlin said she was in charge of the corporate division when she was with the law firm Lee Hishammuddin Allen & Gledhill (LHAG), while all affairs related to 1MDB were handled by the legal division.
It is understood that Justice Adlin was transferred to New Commercial Courts (NCC) from the Civil division, resulting in the lawsuit being brought before Leong.
On May 9, 1MDB, SRC International Sdn Bhd and nine subsidiaries filed the civil lawsuit against Rosmah and another individual seeking US$346mil belonging to the company.
The plaintiffs claimed that Rosmah had used the funds from the companies to purchase luxury items such as jewellery, watches and handbags.
Apart from 1MDB and SRC, other plaintiffs are 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, 1MDB Energy (Langat) Ltd and Global Diversified Investment Company Ltd (formerly 1MDB Global Investments Ltd).
The other plaintiffs also include Affinity Equity International Partners Ltd, Alsen Chance Holdings Ltd, Blackrock Commodities (Global) Ltd, Blackstone Asia Real Estate Partners Ltd and Brightstone Jewellery Ltd.
They named Rosmah as first defendant and Shabnam Naraindas Daswani (known as Natasha Mirpuri) as second defendant.
They claimed Shabnam, who is based in Singapore, had purchased or procured the luxury items on Rosmah’s behalf.
The plaintiffs claimed that funds from 1MDB and its subsidiaries were channelled to various offshore entities – including Affinity Equity, Alsen Chance, Blackrock Commodities, Blackstone Asia and Brightstone Jewellery – before being paid out to 48 different vendors based in 14 jurisdictions for the luxury goods.
They further claimed the goods sought were “traceable substitute” of 1MDB and its subsidiaries’ trust property, thus the plaintiffs had an equitable proprietary interest in the luxury goods.
They are seeking a court declaration that they have an equitable proprietary interest in the good and traceable proceeds in the hands of Rosmah as well as an order for Rosmah to pay the first until the sixth plaintiffs a sum of US$346mil.
