ALT ALT ALT

Arul Kanda’s bank accounts unfrozen by MACC; suit dropped

Arul Kanda’s bank accounts unfrozen by MACC; suit  dropped

KUALA LUMPUR: The Malaysian Anti Corruption Commission’s decision to unfreeze the bank accounts of former 1Malaysia Development Berhad (1MDB) chairman Arul Kanda Kandasamy resulted in the latter withdrawing a suit against the anti graft agency.

Arul Kanda’s lawyer N Sivananthan withdrew the motion to sue since the accounts were frozen since 12 July last year. The lawyer argued that the matter was now academic.

Sivanathan confirmed that the MACC lifted the order on Arul Kanda’s accounts that dealt with the transaction of shares late evening yesterday, following an application to challenge the freeze filed on August 19.

“As such I am withdrawing the motion.

“I have also received further instructions from my client in the event the accounts were unfreeze to no longer pursue the particular case to seek damages,” he said.

High Court Judge Mohamed Zaini Mazlan then proceeded to strike out the motion.

In the motion, Arul Kanda had applied for general damages and other relief deemed fit by the court for the loss of investment opportunities due to the freezing of the accounts.

Sivananthan said all of his client’s nine bank accounts including two Maybank Central Depository System (CDS) bank accounts were initially frozen by the MACC under Section 44 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

“The law provides the MACC to freeze bank accounts but for only a year period.

“Because nothing was done, there were no prosecution or forfeiture action under the Act carried out within the one-year period, we then wrote to the MACC to unfreeze them,” he said.

Arul Kanda filed the application order after the freeze order expired on 12 July 2019.

“As it stands now, none of my client’s accounts are frozen. All accounts have been released,” he said.

Similar to saving accounts that safekeep cash, CDS accounts are bank accounts that safekeep share holdings.

For example, shares bought or sold to a public listed company will be transacted in CDS accounts.

Sivanathan also said the accounts’ freezing had nothing to do with his client’s upcoming joint trial with former prime minister Datuk Seri Najib Razak over the alleged tampering of 1MDB final audit report set for November.


Tags assigned to this article:
1MDBArul Kanda KandasamyMACC