Hearing on govt's bid to stop any dealings over PSI monies moved to Nov 10

Judge Mohd Nazlan Mohd Ghazali set Nov 10 for the hearing after PSOS-VZ's counsel Alex Tan informed the court that there were some developments to the matter and asked for the hearing date, which was initially fixed on Oct 5 to be adjourned to another day.

“There have been some developments to the matter where parties need time to review their respective position and take further instructions,” the lawyer said.

Deputy public prosecutor Budiman Lutfi Mohamed said the prosecution did not object to the replacement of hearing date.

The judge asked lawyer Datuk Mohd Yusof Zainal Abiden representing Tarek Obaid, who is the co-founder of PSI, whether he is taking the same position and Mohd Yusof replied: “Yes, we are on the same position. The developments that my colleague (Tan) mentioned also involve my client”.

Justice Mohd Nazlan also queried Tan and Mohd Yusof whether the court's interim prohibitory order against the moving of the funds had been complied with until the disposal of the main case and both of them informed the court that the order was being respected.

Meanwhile, when asked by reporters on the new developments, Tan however did not reveal the matter.

On July 16, the High Court granted the government’s application for an interim order to block PSI, its director Tarek Obaid and its subsidiary, PSOS-VZ from moving the monies linked to 1Malaysia Development Berhad (1MDB) and kept in a client’s account at the United Kingdom-based law firm, to other entities.

The interim order is to maintain the status quo of parties until the disposal of the government’s prohibition application seeking an order to restrain any dealings of the monies belonging to PSI and PSOS-VZ which are currently in an escrow account held by Clyde & Co LLP in the UK.

Besides US$340,258,246.87, the government, in its application is also seeking unspecified money that was deposited under an intermediate account name, Temple Fiduciary Services Limited, at Barclays Bank in the UK.

The application, filed under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA), named Tarek, PSI, PSOS-VZ, Clyde & Co and Temple Fiduciary as the first to fifth respondents.

On Aug 19, Justice Mohd Nazlan allowed PSOS-VZ to access US$1.357 million out of the US$340,258,246.87 after allowing the company’s application to amend the interim order which prohibited it from moving the monies to other entities.

PSOS-VZ sought to vary the terms of the interim order for part of the monies to be released to pay for business expenses and legal costs.

The US$1.357 million is to be paid to UK-based law firm Kerman & Co following the conclusion of the arbitration by the company.