KUALA LUMPUR: Former minister in the Prime Minister's Department Datuk Zaid Ibrahim has no legal right to sue Datuk Seri Najib Razak and three others to recover the US$731 million (RM2.6 billion) and RM42 million allegedly banked into the prime minister's accounts.
This was following a decision by the High Court after it allowed Najib's application to strike out the suit filed by Zaid against him and three others.
In her judgement, judicial commissioner Rohani Ismail said Zaid failed to show that there is a reasonable cause of action to file the lawsuit.
Rohani held that if this suit is a representative action for the benefit of Malaysians, the plaintiff (Zaid) had failed to show that the second defendant which is 1Malaysia Development Bhd (1MDB) had misappropriated the funds for Najib's personal use or for the use of others.
"This suit is scandalous, frivilous, vexatious and an abuse of the court process.
"The plaintiff has no locus standi to file this suit. There is also lack of particulars in the pleadings," she said in striking out the suit.
The court ordered RM4,000 in costs to be paid to each defendants.
Zaid had on Aug 17, last year filed the writ of summons at the High Court Registry here naming Najib, sovereign wealth fund 1MDB, the Malaysian government, and Najib's stepson Riza Shariz Abdul Aziz as defendants.
According to the statement of claim, Zaid claimed that Najib had breached his fiduciary duties when he allegedly received the funds.
Zaid claimed that the RM2.6 billion had originated from 1MDB, and that the RM42 million came from the Malaysian government via SRC International Sdn Bhd.
Zaid also claimed that Najib had breached his fiduciary duties when he (Najib) allegedly conferred pecuniary benefit on Riza.
He had sought for the court to order Najib to pay back the RM2.6 billion to 1MDB and the RM42 million to the Malaysian government, as well as two per cent interest on the said monies.
Zaid had also sought a court order to compel Riza to pay back all alleged sums he received, directly or indirectly, from 1MDB, and for him (Riza) to transfer to the sovereign wealth fund all purported properties he acquired.
However, the court papers did not specify how much money Riza allegedly received from 1MDB nor the value and other details of purported properties he possessed.
Lawyer Datuk Mohd Hafarizam Harun represented Najib while Datuk Tan Hock Chuan appeared for 1MDB, senior federal counsel Suzana Atan and Shamsul Bolhassan appeared for the government and lawyer Datuk Seri Jahaberdeen Mohamed Yunoos appeared for Riza.
Zaid was represented by lawyer Americk Sidhu.
Meanwhile outside the court, Zaid said he will not appeal against the decision today.
"I think its time for me to start campaigning and work together towards changing the government," he said.
Following the decision today, the court also allowed Zaid to withdraw his originating summons against AmBank Islamic Bhd to inspect Najib's bank accounts and disclose the sources of the funds.
Rohani allowed the withdrawal with liberty to file afresh and RM2,000 cost to be paid to Ambank and Najib who is an intervenor in the legal action.