THE Kuala Lumpur High Court was today told that Petrosaudi International Ltd (PSI) director Tarek Obaid had absolute control over the company’s accounts and purportedly caused US$120 million (RM507.7 million) from 1Malaysia Development Bhd (1MDB) and a PSI joint venture company to be transferred into an escrow account.

Deputy public prosecutor Budiman Lutfi Mohamed submitted that Obaid, at all material times, had ultimate control of Petrosaudi’s accounts, including transfers of the funds, as he was the authorised signatory for these accounts.

“Obaid’s name was not only listed as the director and authorised signatory for these companies, but also appeared to be on its accounts beneficial owner identity.

“The averments made by one of the case investigating officers in his affidavit also asserted that Obaid had, and continues to have, a firm control of all entities under Petrosaudi group of companies,” said Budiman.

Budiman is submitting on the government’s application to block Obaid, PSI and its subsidiary PetroSaudi Oil Services (Venezuela) Ltd (PSOS-VZ) from using more than US$340 million linked to 1MDB, which was kept in an escrow account at a United Kingdom law firm, Clyde & Co, before judge Ahmad Shahrir Mohd Salleh.

On July 16 last year, the court granted the government’s application for an interim order to block the parties from moving the monies linked to 1MDB and kept it in a client’s account at the UK law firm.

The interim order is to maintain the status quo of the parties until the disposal of the government’s prohibition application to seek an order to restrain any dealings on the monies belonging to PSI and its subsidiary PSOS-VZ, which are currently in an escrow account held by Clyde & Co.

Besides the US$340 million, the government, in its application, is also seeking unspecified money deposited under an intermediate account name, Temple Fiduciary Services Limited, at Barclays Bank in the UK.

The application, filed under section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, named Obaid, PSI, PSOS-VZ, Clyde & Co and Temple Fiduciary as the first to fifth respondents.

Submissions before Shahrir continue on Thursday. – Bernama, December 6, 2021.