1MDB Withdraws Suit Against Riza Shahriz And Two Others

KUALA LUMPUR, Feb 24 (Bernama) -- 1Malaysia Development Berhad (1MDB) has withdrawn its suit against Riza Shahriz Abdul Aziz, the stepson of former Prime Minister Datuk Seri Najib Tun Razak, for alleged misappropriation of USD248 million in funds to finance movie productions and purchase various real estate.

Counsel Rabindra S. Nathan, representing 1MDB and its three subsidiaries, told the High Court that he received instructions to withdraw the case against all the defendants.

Riza Shahriz's counsel Tan Sri Muhammad Shafee Abdullah said he had no objections. 

Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan then ordered the parties to file submissions on costs and fixed Feb 28 to decide on the matter.

The trial started on Oct 16 last year with the plaintiffs, 1MDB and its three subsidiaries, namely 1MDB Energy Limited, 1MDB Energy Holdings Limited and 1MDB Energy (Langat) Limited, calling three witnesses including former 1MDB general counsel Jasmine Loo Ai Swan and its former chief executive officer Datuk Shahrol Azral Ibrahim Halmi to testify.

In May 2021, 1MDB and its three subsidiaries filed the suit against Riza Shahriz, Red Granite Pictures Inc and Red Granite Capital Ltd for allegedly receiving around USD248 million in funds that they misused for their personal gain, including financing a film and purchasing various properties.

1MDB claimed that Riza Shahriz had misappropriated their funds from Jho Low or was wilful and reckless in failing to make relevant inquiries as to the sources of the funds.

Thus, the plaintiffs were seeking a declaration that Riza Shahriz was responsible for the misappropriated funds, and therefore, were demanding a repayment.

In a statement of defence filed in 2021, the defendants 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.

Speaking to reporters after the proceedings, another lawyer representing Riza Shahriz, Muhammad Farhan Muhammad Shafee, said the lawsuit was withdrawn following testimony from the defendant's witness, Malaysian Anti-Corruption Commission (MACC) Special Operations Division director Datuk Mohamad Zamri Zainul Abidin, who stated that a representation had been submitted to the Attorney General's Chambers (AGC) to reach a global settlement in this lawsuit.

In his witness statement, Mohamad Zamri said the AGC had agreed to the representation and recorded a consent judgment at the Sessions Court here on May 14, 2020 as a global settlement in the lawsuit.

On May 14, 2020, the Sessions Court here granted a discharge not amounting to an acquittal to Riza Shahriz on five charges of laundering USD248 million (RM1.25 billion), allegedly misappropriated from 1MDB funds.

-- BERNAMA