Report: Jho Low offered Putrajaya RM1.5b to settle 1MDB charges, Apandi negotiator

SHAH ALAM - Fugitive businessman Low Taek Jho has reportedly offered the Malaysian government about RM1.5 billion to settle the charges against him for his alleged role in the 1Malaysia Development Berhad (1MDB) scandal.

The Edge reported that an anonymous source revealed that proposal was negotiated with Putrajaya by former attorney-general (AG) Tan Sri Apandi Ali but rejected by the government.

Low, who is popularly known as Jho Low, is accused of siphoning money from 1MDB, is facing a US$3.78 billion (about RM15.85 billion) suit filed by 1MDB and its four subsidiaries.

Apandi did not respond to The Edge's questions over the matter at the time of writing.

He was appointed as AG in 2015 under Datuk Seri Najib Razak's tenure as prime minister before his service was terminated in June 2018 following the change in the federal government to Pakatan Harapan.

He sued Putrajaya for RM2.23 million over this termination and in April this year, a settlement was reached.

In 2016, he had cleared Najib’s involvement with 1MDB after announcing that he was satisfied that no criminal offence has been committed by Najib.

The former premier was later found guilty in 2020 of abuse of power and misappropriating over RM42 million from 1MDB's former subsidiary SRC International Sdn Bhd.

While the trial for these charges are ongoing, Najib was found guilty by the High Court on July 28, 2020 of abusing his power in relation to the approval of RM4 billion worth of loans from the Retirement Fund Inc (KWAP) to SRC International Sdn Bhd, a former subsidiary of 1MDB.

He was also convicted of three counts each of criminal breach of trust and money laundering involving RM42 million of SRC funds that went into his personal bank accounts between Dec 26, 2014 and Feb 10, 2015.

While Jho Low is a wanted fugitive — with an Interpol red notice against him — lawyer Haniff Khatri Abdulla told The Edge he had a fundamental right under the law to be defended and can still appoint a lawyer to represent him,.

“Any lawyer who appears for a suspect, whether the suspect is in the country or overseas, can represent the suspect. Even though the person is hounded and not here, a lawyer here can represent him ‘in absentia’,” he said.

Haniff also said the lawyer is not obliged to tell the authorities of the whereabouts of his clients, even if he knows it.

He added that there was nothing wrong for Jho Low to have discussions to bargain with the government for the settlement of his legal suit.

“It is clear that Jho Low wants to go to the US to settle his cases there and move on. To do that, he has to clear the red notice to travel. To clear the red notice, he has to speak to the Malaysian Government. There's nothing sinister about the Government discussing the issue with him,” he was quoted saying.

Earlier this month, Messrs Valen & Oh — the law firm representing Jho Low and his father Larry Low Hock Peng in the US$3.78 billion lawsuit filed by 1MDB and its four subsidiaries against them — discharged itself from representing the duo.

High Court Judge Hayatul Akmal Abdul Aziz allowed Messrs Valen & Oh's application following an affidavit in support submitted by by the law firm, which claimed that it could not get instructions from US-based Kobre & Kim.

Besides Jho Low and his father, the lawsuit filed in May last year also named Jho Low's mother Puan Sri Goh Gaik Ewe, his brother Taek Szen, his sister May Lin, and his right hand man Eric Tan Kim Loong, as defendants.

The wealth fund originally sought to claim only US$1.4 billion from Jho Low, Larry Low, May Lin and Tan. Its claim was amended two months later to include Goh and Taek Szen for a revised total claim of US$3.78 billion against the six defendants.

Besides seeking the return of the funds, 1MDB and its subsidiaries are also seeking damages to be assessed by the court. Of the US$3.78 billion being claimed by 1MDB, more than US$2.3 billion is said to have been received by Tan, US$3.5 million by May Lin and US$27.5 million by Taek Szen; there is also US$1.695 million worth of jewellery that is said to have gone to Goh.

In the mean time, a Mareva injunction or asset freeze order has been issued against Jho Low and his father to bar them from transferring or dissipating US$1.432 billion in Malaysia or elsewhere.