1MDB Suit: Riza Shahriz Spent US$248 Mln On Real Estate, Gambling

KUALA LUMPUR, Oct 17 (Bernama) -- The High Court here was told that Riza Shahriz Abdul Aziz, the stepson of former Prime Minister Datuk Seri Najib Tun Razak, used US$248 million to pay for several purchases, including gambling expenses.

In 1Malaysia Development Berhad (1MDB) 's opening statement obtained by media today, the company and its three subsidiaries stated that Riza Shahriz and his associates also spent the money on real estate, movie memorabilia, and to fund Red Granite Pictures motion pictures.

On May 7, 2021, 1MDB and three of its subsidiaries, namely 1MDB Energy Holdings Limited, 1MDB Energy Limited, and 1MDB Energy (Langat) Limited, sued Riza Shahriz and his two companies for allegedly receiving around US$248 million in funds that they misused for their personal gain, including financing a film and purchasing various properties.

1MDB, as the plaintiff, also stated that the defendants had knowingly received funds in circumstances where the funds had been misappropriated from 1MDB and dishonestly assisted in the breaches of fiduciary duty and/or breaches of trust by fugitive businessman Low Taek Jho or Jho Low.

"By reason of the control Riza Shahriz exercised over the second and third defendant (Red Granite Pictures Incorporated and Red Granite Capital Limited), those defendants are fixed with the same knowledge as Riza Shahriz," the documents said.

1MDB also stated that the defendants knowingly and dishonestly assisted the breaches of fiduciary duties. 

The company said Riza Shahriz did not act as an honest person, adding that he had the knowledge that the transactions involving the receipt of each of the various fund transfers during the material period of 2010 and 2012 were transactions in which one could not honestly participate. 

"Alternatively, Riza Shahriz had sufficient basis to hold a suspicion about the propriety of the said transfers and made a conscious decision not to make inquiries, which resulted in actual knowledge.

"He knew that the funds received by the second and third defendants were traceable to a breach of trust or a breach of fiduciary duty. Alternatively, he wilfully shut his eyes to the obvious," it said.

The trial of the suit is held before Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan.

In the suit, the plaintiffs are seeking a declaration that Riza Shahriz is responsible for the misappropriated funds and demand repayment.

In a statement of defence filed on Oct 25, 2021, Riza Shahriz and his two companies claimed to have obtained a loan from the Saudi royal family or the International Petroleum Investment Company to produce several films in the United States.

-- BERNAMA