KUALA LUMPUR — 1Malaysia Development Berhad (1MDB) has withdrawn its suit against Riza Shahriz Abdul Aziz, the stepson of former Prime Minister Datuk Seri Najib Tun Razak, for alleged misappropriation of US$248 million in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, Bernama reports.
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.
Speaking to reporters after the proceedings, another lawyer on Riza Shahriz’s defence team, Muhammad Farhan Muhammad Shafee, said the lawsuit was withdrawn following testimony from the defendant’s witness, Malaysian Anti-Corruption Commission (MACC) Special Operations Division director Datuk Mohamad Zamri Zainul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.
Zambia had 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, 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.
The settlement referred to includes a 2020 deal between Riza Shahriz and the prosecution in which the Malaysian government received a substantial sum amounting to millions of ringgit.
On May 14, 2020, the Kuala Lumpur Sessions court granted Riza Shahriz a discharge not amounting to an acquittal (DNAA) on five charges of laundering US$248 million (RM1.25 billion) which were allegedly misappropriated from 1MDB funds.
The criminal charges were under the Anti-Money Laundering and Anti-Terrorism Financing Act 2001. The charges alleged that the Hollywood producer had transferred the funds to the two accounts of his film production company Red Granite.
1MDB, however, in May 2021 proceeded to file a civil suit against him, along with its three subsidiaries — 1MDB Energy Limited, 1MDB Energy Holdings Limited and 1MDB Energy (Langat) Limited. The plaintiffs also included Red Granite Pictures Inc and Red Granite Capital Ltd in their suit, for allegedly receiving around US$248 million in funds that they misused for their personal gain, including financing a film and purchasing various properties.
Trial started on Oct 16 last year with the 1MDB and its three subsidiaries 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.
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, should repay the funds.
In a statement of defence filed in 2021, Riza Shahriz and the film production 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.
Following his DNAA in May 2020, the US Department of Justice (DOJ) announced in September that it had recovered more than US$60 million (RM248.55 million) after reaching a settlement of its civil forfeiture cases against assets acquired by Riza Shahriz.
The DOJ said the funds had been laundered through financial institutions in several jurisdictions, including the United States (US), Switzerland, Singapore and Luxembourg.
It also said the funds had been washed through high-end properties in Beverly Hills, New York City and London. – February 24, 2025