The High Court in Kuala Lumpur has ordered 1Malaysia Development Berhad (1MDB) to pay RM225,000 in costs to Riza Shahriz Abdul Aziz, the stepson of former Prime Minister Datuk Seri Najib Razak, along with his two companies.
The ruling was made by Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan after 1MDB withdrew its lawsuit against Riza on 24 February.
Lawsuit alleged misuse of 1MDB funds
According to Harian Metro, the lawsuit initially accused Riza of misusing USD 248 million in 1MDB funds to finance film productions and purchase various properties.
1MDB and its three subsidiaries—1MDB Energy Limited, 1MDB Energy Holdings Limited, and 1MDB Energy (Langat) Limited—filed the case in May 2021 against Riza, Red Granite Pictures Inc, and Red Granite Capital Ltd.
The plaintiffs alleged that Riza had wrongfully received the funds from fugitive businessman Low Taek Jho (Jho Low) or had acted negligently by failing to verify the source of the money.
They sought a declaration holding Riza accountable and demanded that he return the misused funds.
1MDB drops case, court orders cost payment
During a previous hearing, 1MDB’s lawyer, Rabindra S Nathan, informed the court that he had been instructed to withdraw the lawsuit against all defendants.
This move was not contested by Riza’s lawyer, Tan Sri Muhammad Shafee Abdullah, leading the court to instruct both sides to submit arguments regarding costs.
Following these submissions, the court ruled in Riza’s favour and ordered 1MDB to pay RM225,000.
Riza claims funds came from Saudi Royals
In his statement of defence, Riza claimed that the funds were not misused but instead came from loans provided by the Saudi royal family or the International Petroleum Investment Company to finance film productions in the United States.
This case follows an earlier decision on 14 May 2020, when the Sessions Court discharged Riza without an acquittal over five charges of money laundering involving USD 248 million (RM1.25 billion) allegedly misappropriated from 1MDB funds.
The latest ruling now places the financial burden back on 1MDB, marking another twist in the long-running 1MDB legal battles.
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