DBS ‘categorically rejects’ S$1.3 billion claim by 1MDB-linked entities under liquidation
The bank has assessed that no provisions are required at this stage
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[SINGAPORE] DBS “categorically rejects” a S$1.298 billion claim for damages in a lawsuit filed by several entities linked to the 1Malaysia Development Berhad (1MDB) scandal.
In a Wednesday (Sep 9) bourse filing, DBS said that a lawsuit has been filed against the bank by four entities under liquidation and the companies’ liquidators, Jason Aleksander Kardachi and Karnjote Singh S/O Jarmal Singh.
The four entities are:
- Affinity Equity International Partners;
- Blackrock Commodities (Global);
- Platinum Global Luxury Services; and
- TKIL Global Investments.
DBS said it “has consulted its legal advisers, and categorically rejects and will vigorously resist the claim”.
“It is a matter of public record that there have been global recovery efforts relating to 1MDB, supported by legal counsel since 2018. All this time, there was no claim against DBS,” it added.
DBS has also “assessed that no provisions are required at this stage”.
The development comes as several other 1MDB-linked entities are involved in a US$2.7 billion lawsuit against Standard Chartered Bank. In June, the High Court dismissed StanChart’s appeal to strike out the lawsuit.
1MDB was a former Malaysian investment fund embroiled in a multibillion-dollar scandal under former Prime Minister Najib Razak. The Malaysian government has to pay US$2.18 billion in remaining debts incurred in the scandal, its deputy finance minister said in July.
DBS shares ended Wednesday at S$77.50, down 0.8 per cent or S$0.60, before its bourse filing.
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