No reason given for the withdrawal of the suit against Riza.
Former finance minister Lim Guan Eng has questioned how Malaysians will recover US$248 million (RM1.09 billion) following 1MDB’s decision to withdraw its civil claim against Najib Abdul Razak’s stepson, Riza Aziz.
Lim, who is also DAP chairperson, pointed out that no reason had been given for the withdrawal.
“The MACC previously stated that Riza and his lawyers were working towards a global settlement to recover the US$248 million. However, no details have been disclosed on how this recovery would take place. Given the ongoing dispute over the Goldman Sachs settlement, public interest demands a full explanation of how Malaysians will get back this money,” he said in a statement.
He highlighted that the Malaysian government had accused Goldman Sachs of facilitating the misappropriation of US$4.5 billion from the US$6.5 billion in bonds it raised for 1MDB in 2012 and 2013.
“In 2020, the government reached a settlement with Goldman Sachs, requiring the bank to pay US$2.5 billion and guarantee the return of US$1.4 billion in 1MDB assets seized worldwide. In exchange, Malaysia dropped its charges against the bank.
“To date, Goldman Sachs has yet to fulfil its obligations under the settlement,” he added.
1MDB withdraws case against Riza
Yesterday, it was reported that 1MDB had withdrawn its US$248 million civil suit against Riza and his companies, Red Granite Pictures Incorporated and Red Granite Capital Limited.
During proceedings at the Kuala Lumpur High Court, 1MDB lead counsel Rabindra S Nathan of Messrs Shearn Delamore informed the court that he had received instructions from the sovereign wealth fund to drop the case.
The lawsuit, filed on 7 May 2021, accused Riza and his companies of receiving US$248 million in misappropriated 1MDB funds, which were allegedly used for personal gain, including financing films and purchasing properties.
Proceedings began on 16 October last year, with Riza’s defence commencing last week. During last week’s hearing, MACC special operations director Zamri Zainul Abidin testified for Riza and Red Granite, stating that Riza had already received a discharge not amounting to an acquittal (DNAA) for five counts of money laundering involving the same US$248 million.
Zamri also confirmed that Riza’s legal team had submitted representations to the Attorney-General’s Chambers, pledging to work towards a global settlement to recover the funds.
Red Granite Pictures, co-founded by Riza and American producer Joey McFarland, is known for producing the Academy Award-nominated The Wolf of Wall Street, starring Leonardo DiCaprio.