FILM producer Riza Shahriz Abdul Aziz and his two companies have said they loaned money from the Saudi royal family or the International Petroleum Investment Company (IPIC) and not from 1Malaysia Development Berhad (1MDB) funds, to produce several films in the United States.

IPIC is a company founded in Abu Dhabi whose managing director at the time was Khadem Abdullah Al-Qubaisi, who was a former aide to Sheikh Mansour Zayed Al Nahyan, the Deputy Prime Minister of the United Arab Emirates and also a member of the royal family.

The matter was stated in the defence statement filed by Riza, Red Granite Pictures Incorporated and Red Granite Capital Limited, as defendants, through Messrs Scivetti & Associates on October 25.

Based on the defence statement, Riza said that it was difficult for an unknown film producer to obtain loans from banks, which was why he decided to go to individuals or companies.

Riza also said that he was then introduced to Prince Saud Abdulaziz Majed Abdulaziz Al Saud (Prince Saud) and Prince Faisal Turki Abdullah Abdulaziz Al Saud (Prince Faisal) from the Saudi royal family, who showed interest in lending him money for Red Granite Pictures.

“I was informed that representatives of the Saudi royal family have agreed to provide the loan.

“The loan would be disbursed by a company known as Alsen Chance Holdings Limited, which is a company beneficially owned by the Saudi Arabian royal family. In this regard, I entered a loan agreement with Alsen Chance,” he said.

Riza said that, after signing the agreement, he received US$1.1 million (RM4.62 million) and US$9 million, and the money was utilised to finance two companies, including the setting up and operating a production house, buying script rights, books and producing films.

The stepson of former prime minister Najib Razak also alleged that he had discharged his obligation under the Alsen Chance loan agreement by October 31, 2021, whereby he had repaid Alsen Chance in full, together with interest.

“At that time, Alsen Chance has no nexus or connection with the plaintiffs (1MDB, 1MDB Energy Holdings Limited, 1MDB Energy Limited and 1MDB Energy (Langat) Limited) and as such, there was no reason for the defendants to suspect the source of the funds,” Riza said.

On the transfer of US$238 million to Red Granite Capital, Riza said the money was used to finance the business of the two companies, including the operational cost of a production house, buying rights of scripts, books and producing films.

Meanwhile, lawyer Hariharan Tara Singh, representing Riza and his two companies, said that during the case management before high court deputy registrar Syeela Marlina Uttaman held online today, the court set December 6 for further case management.

He said that all the defendants had filed statements of defence.

1MDB and its three subsidiaries, namely, 1MDB Energy Holdings Limited, 1MDB Energy Limited and 1MDB Energy (Langat) Limited as the plaintiffs, filed the writ of summons on May 7 through Messrs Shearn Delamore & Co, naming Riza and the two companies as defendants.

New York-based law firm Shearman and Sterling was listed as the fourth defendant.

The companies, in their writ of summons, said that in 2011 and 2012, Riza and his two companies received approximately US$250 million in funds from 1MDB and its three subsidiaries, which were allegedly misappropriated for their personal benefit and for the benefit of their associates, including for financing film productions and purchasing various real estate.

The companies alleged that Riza, who controlled the two Red Granite companies, ought to have known that the monies that originated from 1MDB were misappropriated to them for their benefit.

Hence, the plaintiffs are seeking a declaration that Riza is liable to account for the misappropriated funds and unjust use of the funds, and are also seeking the repayment. – Bernama, November 9, 2021.