CEO Morning Brief

Court Strikes Out Jho Low Mother's Defence in US$1.7m Jewellery Claim by 1MDB

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Publish date: Thu, 04 Apr 2024, 09:45 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (April 3): The High Court on Wednesday struck out the defence filed by the mother of fugitive Low Taek Jhow (Jho Low) over jewellery, as part of an ongoing multibillion-dollar lawsuit by 1Malaysia Development Bhd (1MDB).

Judge Hayatul Akmal Abdul Aziz made the ruling to strike out Goh Gaik Ewe’s defence filed in January 2022 over 1MDB’s claim of jewellery worth US$1.695 million (RM7.9 million) allegedly bought with the strategic development company’s funds.

In January, 1MDB subsidiaries 1MDB Energy Ltd and 1MDB Energy (Langat) Ltd were allowed to serve the notice that contained nine questions about the jewellery. Goh, whose whereabouts are unknown, did not reply to the notice within the stipulated two-week period.

In her statement of defence, Goh argued that she had entered into a settlement with the US Department of Justice, but 1MDB contended that the claims over the jewellery from Goh were not addressed in the documents linked to the settlement.

1MDB then applied to strike out her defence, so that judgement can be entered against her.

Messrs Skrine's Siva Kumar Kanagasabai, acting for the plaintiffs, confirmed the matter with The Edge when contacted. Goh remains unrepresented in this case after the court allowed Messrs Valen, Oh & Partners to discharge itself from representing her in November 2022.

In late November 2022, the plaintiffs also secured a judgement in default against Jho Low, his father and brother Taek Szen.

A sum of almost US$2.8 billion in judgement was entered against Jho Low alone, while another sum of US$983 million was entered against Jho Low and his father. Separately, Taek Szen was required to come up with US$27.5 million.

1MDB filed a US$3 billion lawsuit filed in May 2021 against Jho Low, his mother, his father Tan Sri Larry Low Hock Peng, his brother, his sister Low May Lin and close associate Eric Tan Kim Loong. They are being sued for fraudulent concealment, fraudulent misappropriation of funds, and unjust enrichment, among others.

Besides 1MDB and the two subsidiaries, the other plaintiffs in this case are 1MDB Energy Holdings Ltd and Global Diversified Investment Co Ltd (formerly 1MDB Global Investments Ltd).

A Mareva injunction was also imposed on Jho Low and Hock Peng in March 2022 to freeze their assets of up to US$1.43 billion, as well as to list their assets and current addresses to the plaintiff's solicitors.

Subsequently in October 2022, Hayatul ordered Jho Low and his father to be imprisoned for not abiding by the court order.

Source: TheEdge - 4 Apr 2024

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