US denies any role in transfer of Equanimity

to Malaysia
Bloomberg
| August 18, 2018

Lawyers last week asked a federal judge to order the Justice Department to clarify whether US
agencies knew in advance or were involved in transferring the luxury yacht to Malaysia.

Indonesia has handed over Equanimity to Malaysia and the luxury yacht is now docked in Port
Klang.

WASHINGTON: The US Justice Department reiterated it wasn’t involved in turning over Low
Taek Jho’s US$250 million (RM1.025 billion) super yacht to Malaysia from Indonesia.

The fugitive financier has vowed not to submit to any jurisdiction where his guilt had been
“predetermined”.

Federal prosecutors said their only part in the yacht’s handover was to advise the crew members
of the Equanimity to obey the instructions of the Indonesian government, which had both
physical and legal custody of the 100-metre boat, according to a court filing in Los Angeles on
Friday.

Lawyers representing the companies that hold title to Low’s yacht last week asked a federal
judge to order the Justice Department to provide a “thorough clarification” on whether US
agencies or officials knew in advance or were involved in transferring the Equanimity to
Malaysia.
The lawyers cited a statement by the Malaysian attorney-general that thanked the US for its help
in seizing the yacht.

The yacht arrived at Port Klang on Aug 7 after it travelled from Indonesia, where it was seized in
February as part of the Justice Department’s probe linked to state investment fund 1Malaysia
Development Bhd.

Prime Minister Dr Mahathir Mohamad called on the yacht’s owner to prove that it wasn’t bought
using money from the scandal-ridden fund, at the centre of global probes linked to embezzlement
and money laundering, while Low had said Malaysia’s move to acquire the vessel was
“illegitimate”.

It’s not surprising to see the Justice Department confirm that “Malaysia’s illegal seizure of the
Equanimity was without US knowledge or consent”, a spokesman for Low, through his attorneys,
said in a statement.

The yacht is among more than US$1.7 billion in assets that the US claims were acquired by Low,
commonly known as Jho Low, and his accomplices with money they siphoned from 1MDB.

US district judge Dale Fischer in May had ordered Low’s companies to hand over the vessel to
the US so it could be sailed from Indonesia and sold. Instead, it ended up in Malaysia.

According to the US filing, the US government in June retained Wilson Yacht Management Co
— the same firm used by Low’s companies — to hire a crew and manage the yacht’s upkeep.
The company took the following steps to sail the yacht:

July 6: Began to assemble a crew in Bali, Indonesia;

July 11: Prepared a draft action plan on steps to sail yacht to the US and fuelled it in preparation
for the voyage to the US;

July 16: Obtained approval to pay outstanding wages to the previous crew and obtain visas and
transit paperwork for the new crew;

July 27: Received certification letter confirming the yacht was cleared to dock in Guam on or
after Aug 8

On Aug 1, the US learned that Indonesia had directed the crew to sail the yacht to a location near
the maritime border with Malaysia and informed claimants of the impending move, according to
the filing. On Aug. 6, it found out that the yacht’s custody had been turned over to Malaysia.

“Claimants have alleged that the US government co-orchestrated or assisted in the handover of
the yacht from Indonesia to Malaysia,” the prosecutors said.

Other than actions “which were necessary and appropriate to maintain the safety and security of
the yacht, the US government took no part in Indonesia’s transferring the yacht to Malaysia”.
Earlier Friday, a spokesman for Low, through his attorneys, issued a statement in response to a
Wall Street Journal story that said China had been harbouring him and that Malaysia will seek to
extradite him.

“It is little wonder Mr Low believes there is no jurisdiction where he can get a fair hearing in this
matter,” according to the statement. “To reiterate: Mr Low will not submit to any jurisdiction
where guilt has been predetermined by politics and self-interest overrules legal process.”