Tuesday, November 26, 2019

London Court Of Arbitration should never have accepted 1MDB-IPIC settlement: UK Court Of Appeal decision further confirms Realpolitikasia analysis of 2017

by Ganesh Sahathevan

The UK Court of Appeal in London has ordered the London High Court to hear Malaysia’s bid to nullify a consent award involving 1MDB and two Abu Dhabi companies.
 ... Malaysian attorney-general Tommy Thomas said the ruling means the dispute involving 1MDB and Minister of Finance Incorporated (MOF Inc) against the International Petroleum Investment Company (IPIC) and Aabar Investments PJS, would play out in public.
“Our setting aside application will now be heard by the High Court in London as part of an open and transparent process enabling Malaysians and the rest of the world to follow the proceedings in court.
“It is our case that the settlement deeds, signed in April 2017, further frustrate any legitimate attempt to challenge the settlement by including a condition that no court proceedings should be brought to set aside the consent award recorded following the settlement deeds.
The above further confirms the analysis below by this writer  posted on in April 2017.

Thursday, April 27, 2017

Illegality may prevent London Arbitration Court from making a consent award in the IPIC-1MDB matter-Settlement may be denied

by Ganesh Sahathevan

Settlement weakens DOJ's case

IPIC informed the LSE on Monday:

International Petroleum Investment Company PJSC (IPIC), Aabar Investments PJS (Aabar), the Minister of Finance (Incorporated) Malaysia (MoF Inc.) and 1Malaysia Development Berhad (1MDB) are pleased to announce that an agreement has been reached between all parties that provides for a settlement in respect to the arbitration proceedings at the London Court of International Arbitration (the Settlement). The agreement is conditional on the Arbitration Tribunal making a consent award by 31 May 2017.

Meanwhile, a  senior figure in the Malaysian Government and ruling UMNO ,Puad Zarkashi, has said publicly that the settlement is intended to defeat a criminal investigation by the US Department of Justice ,and other national enforcement agencies into 1 MDB, the Malaysian Government and Najib Razak , the Prime Minister and Finance Minister: 

"This arbitration settlement has weakened the US DOJ civil suit and claims that 1MDB's funds were stolen," said Umno supreme council member Mohd Puad Zakarshi in a statement today.Mohd Puad is also the director-general of the Information Ministry's Special Affairs Division (Jasa).

While the rules governing arbitration courts are complex, it is hard to see that the London Court Of International  Arbitration  would want  to be a party to a  consent award where at least one party has made public that the award will be used as a means to defeat a a criminal investigation.To make matters worse, this is a matter that has been very widely publicized. worldwide and it would be impossible for anyone, including the arbitrators in this matter, to deny knowledge of what is intended.


Other references:

1MDB -IPIC settlement: 1MDB insists that IPIC will be paid out of "units" guaranteed by IPIC itself:-IPIC now implicated in money laundering

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