Dec 11, (V7N) - A Malaysian court has ruled to bar PetroSaudi International and its CEO, Tarek Obaid, from accessing $340 million linked to the massive 1MDB sovereign wealth fund scandal. The Kuala Lumpur High Court found sufficient evidence to suggest the funds were connected to money laundering activities, granting the government’s application to freeze them.

This prohibition extends to PetroSaudi subsidiaries, including PetroSaudi Oil Services (Venezuela), as well as UK-based law firm Clyde & Co LLP and Temple Fiduciary Services Ltd. The decision follows Obaid's conviction in Switzerland, where he received a seven-year prison sentence in August for embezzling $1.8 billion from 1MDB. His associate, Patrick Mahony, was also sentenced to six years.

The 1MDB scandal has been the subject of global criminal investigations, implicating numerous individuals who allegedly misappropriated billions from the fund to finance extravagant purchases, including artwork and a superyacht. The scandal triggered political upheaval in Malaysia, leading to the fall of then-Prime Minister Najib Razak's government in 2018.

Najib, currently imprisoned for corruption related to the scandal, is seeking a legal appeal to serve his sentence under house arrest. The 71-year-old also faces several other ongoing cases tied to the 1MDB debacle.

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