A multi-million dollar civil lawsuit filed by 1MDB and 10 related entities against Rosmah Mansor has stalled due to a judicial vacancy, leaving the high-profile case without a trial date.
The suit, filed in May 2024, seeks the recovery of luxury assets and financial compensation over claims that the wife of former prime minister Najib Razak acquired high-end goods using funds allegedly misappropriated from 1MDB-linked companies.
The vacancy on the bench has also delayed several key interlocutory applications filed by both the plaintiffs and the defence, effectively putting the proceedings on hold.
A case management hearing is scheduled for next week, during which the court is expected to provide updates and directions on the future progress of the case.
According to court filings, 1MDB and the co-plaintiffs allege that Rosmah received and possessed thousands of luxury items purchased using company funds that had been unlawfully diverted.
Liquidators investigating the case reportedly traced a complex money trail involving more than US$346 million. The plaintiffs claim the funds were channelled through eight offshore entities allegedly controlled by individuals linked to Najib, including fugitive financier Low Taek Jho, better known as Jho Low, and businessman Eric Tan.
The suit further alleges that between 2009 and 2014, approximately 320 payments were made to at least 48 luxury vendors around the world to finance the purchases.
According to the plaintiffs, the transactions formed part of a coordinated scheme designed to move misappropriated funds through multiple intermediaries before the money reached the suppliers.
A key development in the case is the involvement of Shabnam Naraindas Daswani, who was originally named as a co-defendant but will now testify as a witness for 1MDB after the lawsuit against her was discontinued two months ago.
Many of the disputed items were among the luxury goods seized during police raids at Pavilion Residences in May 2018, which uncovered 11,991 pieces of jewellery and more than 700 handbags.
Although prosecutors sought to permanently forfeit the items under anti-money laundering laws, the application was dismissed in 2022 after the court ruled that the prosecution had failed to establish a direct link between the assets and any predicate offence committed by Rosmah. The items were subsequently returned to her in stages throughout 2022.
Despite that outcome, 1MDB and the other plaintiffs now argue that the same luxury items were purchased using misappropriated company funds, forming the basis of the current civil recovery action.
The co-plaintiffs include 1MDB Energy Holdings Limited, 1MDB Energy Limited, 1MDB Energy (Langat) Limited, Global Diversified Investment Company Limited, SRC International Sdn Bhd, Affinity Equity International Partners Limited, Alsen Chance Holdings Limited, Blackrock Commodities (Global) Limited, Blackstone Asia Real Estate Partners Limited and Brightstone Jewellery Limited.
