Former Umno leader Khairuddin Abu Hassan has filed a suit to order the prime minister’s wife, Rosmah Mansor, to return a 22-carat pink diamond set in a necklace to 1MDB.
- Rosmah Mansor, Jho Low, 1MDB – 1st, 2nd, 3rd defendants respectively
- Rosmah to return jewellery gift from 1MDB
- Low to repay 1MDB all money misappropriated
- Rosmah and Low to compensate 1MDB for misappropriation and use of jewellery
- Rosmah and Low to pay costs and other reliefs
He also wants businessman Low Taek Jho, better known as Jho Low, to pay 1MDB all the money misappropriated from the state-owned investment fund, FMT news portal reported.
Khairuddin said he was initiating the suit as no other individual was bringing any action to recover the jewellery and enforce the law.
“The taxpayers will benefit through the recovery of the jewellery because they are the ultimate paymasters of 1MDB debts,” Khairuddin said.
In his writ and statement of claim filed yesterday at the Kuala Lumpur High Court registry via e-filing, he wants Rosmah and Low to compensate 1MDB for the misappropriation and use of the jewellery and any money due to the company, as well as to pay costs and other reliefs deemed fit by the court.
Khairuddin named 1MDB as the third defendant in his suit, with Rosmah and Low being the first and second defendants respectively.
He said 1MDB had obtained US$6.5 billion (RM27.93 billion) by borrowing from overseas lenders and that the company was the beneficial owner of the money.
According to Khairuddin, Low committed theft or criminal breach of trust of the said loans and had no title in law or in equity over the money.
He said that between June 2013 and March 2014, Low, through his agent Tan Kim Loong, bought the jewellery from Loraine Schwartz in New York for US$27.3 million, money allegedly stolen by Low.
Khairuddin claimed that the jewellery was a gift to Rosmah in March 2014 and that she was aware of the matter.
“The first defendant (Rosmah) gave no consideration for the said jewellery. Therefore, she has no title in law and equity to it. 1MDB is therefore entitled to trace the jewellery in the hands of Rosmah.”
He said although the jewellery belonged to 1MDB, the company would not take action to retrieve the valuables because it was under the control of the prime minister, Rosmah’s husband.
“Despite overwhelming evidence that this money was stolen and misappropriated, 1MDB continues to deny this fact,” Khairuddin said.
Rosmah has previously denied receiving 1MDB funds and Najib has also consistently denied any wrongdoing.
The United States Department of Justice (DoJ) has filed two civil forfeiture lawsuits against assets worth US$1.8 billion (RM7.7 billion) that it alleged were purchased with
funds embezzled from 1MDB.
On Jul 21 last year, it filed its first suit where the term ‘MO1’ (Malaysian Official 1) was mentioned 36 times.
On Jun 15, the DoJ filed its second suit, alleging that nearly US$30 million was stolen from 1MDB and used to buy jewellery.
The filings lodged at the US district court in Los Angeles did not identify Najib or Rosmah by name. However, the jewellery purchases were stated as for the wife of ‘Malaysian Official 1’.
On Aug 10, court filings lodged at the Central District Court in California by the DoJ showed that it was asking for a stay on its civil lawsuits as it was conducting a criminal probe into 1MDB.