PRIME Minister Najib Razak is appealing against a court decision that rejected his bid to strike out a suit filed by a youth group concerning 1Malaysia Development Bhd’s debt payments.

He is also asking the court to stay all proceedings until that appeal has been disposed.

The Kuala Lumpur High Court yesterday ordered Najib, 1MDB and the government to enter their defence regarding a suit over the troubled state investor’s debt payments to Abu Dhabi’s International Petroleum Investment Company (IPIC).

That suit was filed by the Pakatan Harapan-linked Gerakan Anak Muda Tolak Najib (GANT1) in July.

Justice Hue Siew Kheng yesterday dismissed a written application by the three parties for a stay to file their defence.

On January 9, Hue had dismissed the defendants’ application to strike out the case on the grounds that GANT1 did not have the jurisdiction to sue as the matter between 1MDB and IPIC was settled in London.

Najib’s lawyer, Mohd Hafarizam Harun, today said they are waiting for early hearing date from Court of Appeal for their stay application.

“Be that as it may, we have until February 9 to file a defence,” Hafarizam said. 

The suit revolves around the US$1.2 billion loan and a further US$3.54 billion in cash advances 1MDB claimed it made to Abu-Dhabi-controlled entities as part of obligations under a May 2012 bond arrangement.

IPIC claimed it never received any payment from 1MDB, which led to the legal dispute in the London court. A settlement, however, was reached days before any hearing began last May.  

GANT1 is seeking to compel the three parties to provide detailed accounts of the monies paid to IPIC and its subsidiary, Aabar Investment PJS.

The group is also seeking an order that the three parties have a duty to return any payments that were wrongly paid to IPIC or Aabar, and/or the British Virgin Island-listed company Aabar Investments PJS Ltd (Aabar BVI) to 1MDB.

It is also seeking an order that the settlement agreement between IPIC and 1MDB at the London International Court of Arbitration on May 11 be declared invalid. 

Hue yesterday ruled that there was no prejudice sustained by the defendants to put in the defence, as it has been six months since the suit was filed, yet the pleadings have yet to be closed.

Hue also ruled there was no averment on oath that any part of the consent award between IPIC and 1MDB in London was protected under the Official Secrets Act (OSA) or any other legal restrictions to stop filing of defence.

All defendants were ordered to file and serve statement of defence respectively by or before 3pm on February 9.

Haniff Khatri Abdulla and Rafique Ali represented the plaintiffs, federal counsel Shaiful Nizam Shahrin appeared for the government and Cairns Tan represented 1MDB. – January 30, 2018.