Malaysia’s 1MDB sues PetroSaudi executive, seeking US$1.83 billion after it says ‘sham’ venture made it believe a Saudi king owned oil company
- Malaysian state fund 1MDB has sued Petrosaudi International executive Patrick Mahony for US$1.83 billion over a 2009 joint venture with the oil exploration firm
- 1MDB, in its statement of claim, said it was misled into believing that a Saudi king owned Petrosaudi, which led to it agreeing to the joint venture
Troubled Malaysian state fund 1MDB has sued Petrosaudi International Ltd.’s executive Patrick Mahony for US$1.83 billion over a 2009 joint venture with the oil exploration firm.
1MDB, in its statement of claim, said it was misled into believing that a Saudi king owned Petrosaudi, which led to it agreeing to the joint venture. Malaysiakini was the first to report on the case.
The joint venture “was a sham which resulted in 1MDB suffering a complete loss of its investment,” of US$1.83 billion, according to 1MDB. Mahony, who was the chief investment officer of Petrosaudi at the time, was liable for the sum on the ground of “dishonest assistance,” it said.
In a May 7 court filing to the Kuala Lumpur High Court, 1MDB alleged that PetroSaudi Chief Investment Officer Patrick Mahony aided several individuals, including former Malaysian Prime Minister Najib Razak and fugitive financier Jho Low, to misappropriate its funds.
1MDB also named UK-based law firm White & Case LLP as a defendant in the suit, claiming that it acted on Mahony’s instructions to prepare purchase and loan agreements on behalf of PetroSaudi to deceive 1MDB, Bernama reported.
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Reuters was unable to reach Mahony for comment. White & Case did not immediately respond to a request for comment.
