Court of Appeal allows 1MDB to use Singaporean woman’s affidavit in bid to freeze Rosmah’s RM1.41b assets

The Court of Appeal in Malaysia has permitted 1Malaysia Development Berhad (1MDB) and associated entities to include an affidavit from a Singaporean woman in their effort to freeze the assets of Datin Seri Rosmah Mansor, valued at over US$346 million (RM1.41 billion). The three-judge panel, consisting of Datuk Dr Alwi Abdul Wahab, Datuk Ismail Berahim, and Datuk Leonard David Shim, unanimously upheld the appeal, overturning the High Court's decision.

Judge Shim explained that the High Court had utilized the incorrect legal principle when ruling against the companies' request to admit the affidavit by Shabnam Naraindas Daswani. The court found that the High Court had failed to consider the absence of a requirement for exceptional circumstances in allowing the submission of such an affidavit.

The companies, including 1MDB and ten other entities, are seeking to freeze Rosmah's assets due to claims that she obtained more than 12,000 luxury items, including jewelry, watches, and handbags, using approximately US$346 million allegedly misappropriated from 1MDB. The judge confirmed that the delay in preparing the affidavit, which comprised 319 pages and nine volumes, was justified and would not cause significant harm to Rosmah, as she would be granted ample time to review and respond to its contents.

The lawsuit, filed by 1MDB and the other companies, accused Rosmah of possessing the luxury items, and sought declarations of ownership and a court order demanding payment.