The High Court of Singapore has dismissed an appeal by the now-defunct BSI Bank Ltd to strike out a civil claim totalling US$394 million brought by 1Malaysia Development Berhad (1MDB) and its subsidiary, Brazen Sky Ltd. This landmark decision clears the way for the full hearing of the case, which forms part of Malaysia’s broader international effort to recover misappropriated sovereign wealth.
In a ruling delivered on 27 May, Justice Andre Maniam rejected BSI’s appeal on all grounds. The court also ordered the bank to cover the legal costs incurred by 1MDB and Brazen Sky in relation to the appeals. The ruling was confirmed in a statement issued by London-based Byfield Consultancy, acting on behalf of 1MDB.
“We are pleased this application has been denied and are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia’s sovereign wealth fund,” a spokesperson for 1MDB’s board said on Monday.
Established in 2009 under the administration of former prime minister Datuk Seri Najib Razak, 1MDB became embroiled in one of the largest global financial scandals, attracting investigations across more than a dozen jurisdictions—including the United States, Switzerland, the United Arab Emirates, and Singapore. Najib was subsequently convicted in a related case and sentenced to 12 years’ imprisonment and a RM210 million fine, later reduced to six years and RM50 million following a partial pardon.
The civil suit in Singapore, initiated on 2 May, alleges that BSI Bank and several of its former officers played a critical role in facilitating the unauthorised movement of funds and laundering of proceeds, thereby enabling the misappropriation of substantial assets belonging to 1MDB.
BSI, a wholly-owned subsidiary of BSI AG in Switzerland—formerly owned by Brazil’s BTG Pactual and now part of Zurich-based EFG International—has already been convicted of money laundering offences by Swiss authorities. Swiss prosecutors are currently refining their findings to reflect the specific criminal activities conducted against 1MDB entities.
In parallel to the Singapore High Court proceedings, the joint liquidators of Brazen Sky have initiated further applications to pursue related claims against BSI Bank and its former executives.
The litigation is a critical component of 1MDB’s broader global asset recovery initiative, aimed at restoring billions in misappropriated public funds to the Malaysian people.
“Through this action and others around the world, we will ensure the rightful recovery and restitution of these assets back to the Malaysian people,” the 1MDB board spokesperson added.
Legal representation for 1MDB and Brazen Sky includes King’s Counsel Ng Jern-Fei, supported by Tan Jun Hong of Duxton Hill Chambers and a team from LVM Law Chambers LLC comprising Qabir Sandhu, Law May Ning, and Clara Lim. Lim Chee Wee Partnership, based in Kuala Lumpur, serves as global coordinating counsel for all 1MDB-related asset recovery matters.
Angela Barkhouse and Toni Shukla of Kroll (Cayman) Ltd act as joint liquidators for Brazen Sky, represented in Singapore by Oon & Bazul LLP.
-The Edge Malaysia
