KUALA LUMPUR: A High Court judge has recused himself from hearing the lawsuit filed by 1Malaysia Development Bhd (1MDB) against Datin Seri Rosmah Mansor, in which the company is seeking US$346 million that is allegedly linked to her.
Judicial Commissioner Leong Wai Hong made the decision after granting Rosmah's application, citing his previous association with the law firm Messrs Skrine, which has been involved in lawsuits and investigations related to 1MDB and her husband, former prime minister Datuk Seri Najib Razak.
Leong said that he had recused himself in the interest of justice.
"After considering the application, I agree to recuse myself from hearing this suit on the principle that justice must not only be done but must also be seen to be done. Therefore, I allow the application. This suit will now be heard by another High Court judge," he said.
In her affidavit, Rosmah argued that Leong had served as a partner and head of litigation and arbitration at Messrs Skrine from 2011 to 2021, a firm involved in numerous legal matters concerning 1MDB and Najib.
This marks the second time Rosmah has sought the recusal of a judge in the lawsuit.
Her first request for recusal was rejected by High Court Judge Adlin Abdul Majid on Sept 9, who ruled that Rosmah had not demonstrated any genuine risk of bias if he continued hearing the case.
However, after Adlin was transferred from the Civil Division to the New Commercial Courts (NCC), the case was reassigned to Leong.
1MDB, along with its subsidiaries, filed the lawsuit against Rosmah and Singaporean businesswoman Shabnam Naraindas Daswani (also known as Natasha Mirpuri) on May 9.
The company claims that Rosmah used 1MDB funds to amass a collection of luxury items, including jewellery and handbags, valued at US$346 million.
According to the plaintiffs, Shabnam facilitated the acquisition of these items on Rosmah's behalf.
The suit alleges that between 2010 and 2014, 320 payments totalling US$346.01 million were made to 48 vendors in 14 countries, with the funds transferred to offshore entities that were not linked to 1MDB's intended investment activities.
The plaintiffs assert that the funds, meant for investments in various ventures, were instead fraudulently diverted to offshore accounts controlled by Najib and his associates.
They are seeking a court order to compel Rosmah to repay the US$346 million or an amount determined by the court, in addition to seeking damages or fair compensation.
In May 2022, 1MDB filed 22 civil suits against various individuals and entities, including Najib, to recover RM96.6 billion in assets.
The Finance Ministry confirmed that six of these writs were filed by 1MDB, while the remaining 16 were filed by its former subsidiary, SRC International Sdn Bhd.
The total amount sought by both entities exceeds RM96.6 billion, including some RM300 million against local parties.