NO notices to sell the Equanimity superyacht have been received by her owners, who say her ownership and custody is still before the US courts hearing suits to recover funds stolen from 1Malaysia Development Bhd (1MDB). 

Owners Equanimity (Cayman) Ltd spokesman Clementine Hay said they have not received any notice of a sale despite Malaysian authorities announcing it was selling the US$250 million (RM1.025 billion) yacht seized on August 7.

“To move for a sale in Malaysia immediately would be a remarkable violation of due process and international legal comity and would call into question the actual ownership of the yacht for any potential buyer,” said Hay, from the public relations company appointed by the registered yacht owners. 

“These misguided actions would create a cloud on the Equanimity ownership that could easily take years to resolve in several courts around the world,” she added. 

Malaysia said the superyacht was bought with stolen 1MDB funds, a claim being fought in the US courts. 

1MDB, which chalked up RM42 billion in debts, is the scandal-ridden fund that brought down the Najib Razak government at the May 9 polls. 1MDB has now claimed ownership of the yacht in the Malaysian courts. 

The spokesman said Equanimity (Cayman) Ltd  said there were ongoing proceedings before US courts – including an appellate court – regarding the ownership and custody of the asset, with active requests filed before an American judge within the past 24 hours, including one a week ago. 

“For Malaysia to act unilaterally while there are pending court requests in the US would be an affront to the international rule of law. In fact, Malaysia’s seizure of the vessel is already contrary to a US court order appointing the US government as custodian of the yacht,” she said. 

She said the US had previously stated that it had no advance knowledge of Malaysia’s seizure of the yacht, and “presumably the US had no advance notice of this current  Malaysian action either”.

“It is important to note that, despite conflicting statements coming out of the Malaysian government, the US has not proven its case regarding the Equanimity. 

“The US has only filed unproven allegations in court proceedings, after which the US put the entire case on hold over claimants’ objections. The result of that is that no party has been able to substantively respond to the allegations, and nor has the US been required to prove them.”

The spokesman also said Malaysia’s seizure of the Equanimity and “apparent intent to immediately sell it goes entirely against the interests of the yacht and will drastically reduce – indeed, it is already drastically reducing – its potential sale value.” 

The owners said the Malaysian government’s “precipitous, ill-conceived, and misguided  actions” have the yacht running 24 hours per day, seven days a week on generator power, “which is unsustainable and harmful to the vessel”. 

“Moreover, Malaysia has currently docked the yacht in a hazardous environment in which toxins, such as water pollution and nearby smoke, are greatly damaging it.  

“Because Malaysia apparently does not have – or does not want to spend – the necessary  funds to properly maintain the vessel while it is prepared for a value-maximising sale, Malaysia has instead proposed a ‘fire sale’,  in which the yacht is to be sold for a fraction of its true value,” the spokesman said. – August 24, 2018.