Judge Mohd Nazlan Mohd Ghazali made the order during case mention today.
He said the order would be enforced until the disposal of the main application on Aug 28.
He said this after hearing submissions from the prosecution and the lawyers appearing for Tarek and PetroSaudi International’s South American subsidiary company, PetroSaudi Oil Services (Venezuela) Limited.
Lawyers Yusof Zainal Abiden and Alex Tan earlier told the court they had received instructions to oppose the government’s bid for the court order prohibiting use of the money.
The prohibition order was sought under Section 53 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (Amla).
“We intend to file our affidavits and need time to take instructions from our clients overseas,” Yusof said.
However, deputy public prosecutor Budiman Lufti Mohamed urged the judge to issue an interim order pending the full hearing next month.
“That way, we know for sure the money in Clyde & Co LLP will not be dispersed to the respondents,” he said.
He also said the Malaysian Anti-Corruption Commission (MACC) had been told that an arbitration award was issued in favour of PetroSaudi Oil Services last Friday.
But Yusof asked whether such provisions existed allowing courts to grant a temporary order.
“That would mean the idea of opposing the application would be gone,” h added.
Tan meanwhile said MACC had taken no action despite knowing about the money since January.
“The fact is, Malaysia is fully aware of the arbitration proceeding between PetroSaudi Oil Services and Petróleos de Venezuela,” he said.
“They even contacted the UK government and wrote to Clyde.
“I see no basis for the court to issue an ad-interim order on grounds of urgency over a purported award issued by the tribunal.”
But lawyer Muhammad Nizamuddin Abdul Hamid, appearing for MACC, objected to Tan’s claim that the agency had taken no steps regarding the money.
“The NCA informed us to get a court order here so they could enforce it there,” he said, referring to the UK’s National Crime Agency.
“This is because Tarek faced no charges there,” he added.
The prosecution is contending that the US$340,258,246.87 in Clyde & Co LLP belonging to PetroSaudi and its subsidiary company was gained through unlawful activities.
Besides the US$340 million, the government is also seeking to bar the use of money kept in a bank account under the name Temple Fiduciary Services Limited.
MACC investigating officer Mohd Afiq Abd Aziz affirmed an affidavit for the application for a prohibition order.
He claimed the money was related to a conspiracy to defraud 1MDB involving Tarek, Low Taek Jho and former prime minister Najib Razak.
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