The 1MDB scandal is not yet over. After the US formally ended its case with Goldman, the Malaysian state fund is now reportedly suing an executive from oil exploration and production firm PetroSaudi.
1MDB has filed a lawsuit against PetroSaudi chief investment officer Patrick Mahony, according to a report (in Malay) by state news agency «Bernama», alleging that he had aided individuals, including ex-Malaysian Prime Minister Najib Razak and fugitive financier Jho Low, to misappropriate funds.
UK-based law firm White & Case LLP was also named as a defendant for its role in preparing purchase and loan agreements on behalf of PetroSaudi to deceive 1MDB.
Failed Joint Venture
The case relates to a failed joint venture between 1MDB and PetroSaudi to develop oil fields in 2009. 1MDB is seeking for Mahony and White & Case to repay the $1.83 billion, among other damages.
The latest development follows the US government’s decision to formally end its case against Goldman in May after dismissing a bribery conspiracy charge.