Husam, Matthias drop 1MDB class action suit in US court
Salor assemblyperson Husam Musa and lawyer Matthias Chang have dropped their class action suit against US-based corporations and individuals linked to alleged embezzlement and money laundering involving 1MDB.
This is according to a court filing on Friday, in the New York Southern District Court, by US-based attorneys representing the duo.
Appended below is the listing for the notice of dismissal available for public viewing on the US Federal Court System’s Public Access to Court Records (Pacer) online website, as noted on federal court cases monitoring service site pacermonitor.com.
“NOTICE OF VOLUNTARY DISMISSAL Pursuant to Rule 41(a)(1)(A)(i) of the Federal Rules of Civil Procedure, the plaintiff(s) and or their counsel(s), hereby give notice that the above-captioned action is voluntarily dismissed, WITHOUT prejudice against the defendant(s) Goldman Sachs Group, Inc., Debra Whelan Johnson, Timothy Leissner, Christopher Joey McFarland, Metropolis IX Capital Advisors, LLC, Red Granite Pictures, Inc., Riza Shahriz Bin Abdul Aziz, Low Taek Jho. Document filed by Husam Musa, Matthias Chang. (Burke, Louis).”
According to Rule 41(a)(1)A(i) of the Federal Rules of Civil Procedure, the plaintiff may voluntarily dismiss their suit without a court order by filing a notice of dismissal before the opposing party serves either an answer or a motion for summary judgment.
The voluntarily dismissal was also done without prejudice, which will give them leeway to file a new legal action in the future, if they so desire.
However, the reason the suit was dropped is unknown.
When contacted, Husam told Malaysiakini, “I have not received an explanation yet from my counsel, but they will update me soon.”
Malaysiakini is also attempting to reach Chang for comments. The duo filed the suitin a US court in August.
Meanwhile, in a statement to The Hollywood Reporter, Red Granite said, “Dismissing this frivolous lawsuit was the right thing to do because it never should have been filed in the first place.
“Red Granite continues to work on exciting new projects,” added the film production and distribution company.
In an immediate reaction, Multimedia and Communications Minister Salleh Said Keruak condemned “Western media” for not reporting that the suit had been dismissed.
“This lawsuit by Tun (Dr) Mahathir’s henchmen generated global news and controversy when it was filed on 11 August (2016).
“But, strangely, the Wall Street Journal and other Western media haven’t reported that yesterday the lawsuit was dismissed,” he said in a statement today.
The class action suit was to seek damages for the theft of the state investment firm’s funds as well as to recover assets acquired using the stolen funds.
The class action followed the US Department of Justice (DOJ) civil forfeiture suits which sought to seize more than US$1 billion in assets allegedly acquired using stolen 1MDB funds.
The DOJ claims that overall, US$3.5 billion of 1MDB funds were misappropriated.
US$731 million of this was found to have been transferred to the accounts of a figure the DOJ referred to as ‘Malaysian Official 1’ (MO1).
Minister in the Prime Minister’s Department Abdul Rahman Dahlan has since confirmed MO1 is Prime Minister Najib Abdul Razak.
Najib, however, has denied claims of misappropriating government funds.
But his stepson, Riza, is also named in the DOJ’s court documents, and was one of the eight defendants in the class action suit by Husam and Chang
The Chief Secretary to the Government Tan Sri Ali Hamsa should be very concern for such an organised crime which is hurting the Federal Government coffer and the rakyat, for such systemic leakage.
The Malay Mail Online:
Finance minister: Govt lost RM540m in subsidised cooking oil to smugglers
Sunday October 23, 2016
09:14 AM GMT+8
KUALA LUMPUR, Oct 23 ― Unscrupulous people have been selling subsidised cooking oil outside the country, causing the government to lose RM540 million a year, Second Finance Minister Datuk Johari Abdul Ghani revealed.
He said the government subsidised up to 85,000 metric tonnes of the control item when the consumption of the nation was only at 40,000 metric tonnes, according to a report today in Mingguan Malaysia the Sunday edition of Malay daily Utusan Malaysia.
“This means there has been an excess 45,000 metric tonnes of cooking oil that goes somewhere,” he was quoted as saying.
For one metric tonne, Johari said the government paid RM1,000.
“Hence, RM45 million multiplied by 12 months is RM540 million, so who is reaping this benefits?” he asked.
According to the report, he said the government continued to dish out subsidies because they came from the people’s money.
Johari reportedly urged the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) to strengthen checks to ensure there were no smuggling activities that benefitted unscrupulous people.
Last week, The Star reported that subsidies for cooking oil will be removed in stages beginning next month, leaving price controls only for 1kg packages.
Johari subsequently refuted of such a move, stressing that the people will continue to benefit from cooking oil subsidy from the government.
He explained that the government only wanted to control the price for export sale.
In announcing the Budget 2017, Prime Minister Datuk Seri Najib Razak said subsidies amounting RM10 billion will be channeled to fuel, cooking gas, toll and public transportation.
For size, 45,000 tonnes of liquid is the amount of jet aviation kerosene required for a fully laden A380 flight from Kuala Lumpur to London, 204 times.Thats daily flight to and fro London Heathrow, continuously for almost 15 weeks.
If it is cooking oil, then the process of smuggling should be more organised compared to diesel, since cooking oil is perishable good and properties change due to exposure to weather, heat etc.
A smuggling syndicate of that size suspiciously should involve so many public servants of various capacities and ranks.
Probably badhats amongst law enforcement officers of several agencies, marine department, inspectors of the curious minds pondering easily. These public servants are immediately thought of working hand-in-hand with the smugglers. Also there is highly probably its multi level.
The guess work is endless.
Then again, if raised with KSN Ali, it is obvious outrightly he might instruct MACC to investigate as immediate response.
However, as the Head of Civil Service, it is imperative him to look into the creation and roll out of multi-agency task force to address smuggling issues.
The commodities leaving our nation such as cooking oil, diesel, LNG and inbound such as cigarettes.
It is shameful for the Executive on behalf of the rakyat to provide so much for the civil servants but they cannot do enough to reciprocate.
KSN Ali also has the duty to protect the perception of the larger civil service, who are free from corrupt practices. The best manner is to ensure organised crimes like massive smuggling is complete eradicated.