The United States Department of Justice (DOJ) has refuted claims that it was involved in Indonesia's handover of the luxury yacht Equanimity to Malaysia earlier this month, raising doubts over plans by Prime Minister Mahathir Mohamad's administration to sell the vessel linked to the money-laundering scandal at 1Malaysia Development Berhad (1MDB).
In a filing to the Central District Court of California on Friday, the DOJ stated that "the US government took no part in Indonesia's transferring the yacht", contradicting earlier claims by Malaysia's Attorney General's Chambers that the seizure of the US$250 million (S$343 million) superyacht was carried out after delicate negotiations with Washington.
The DOJ court filing, however, made no mention as to whether Malaysia's seizure of the 92m vessel had contravened US law.
Malaysian lawyers tracking the case said the DOJ response is likely to complicate Malaysia's plans to sell the yacht, which is believed to be owned by businessman Low Taek Jho, who the US and the Malaysian authorities say played a central role in the 1MDB debacle.
Responding to the DOJ filing, Tun Dr Mahathir told news site Malaysiakini yesterday that the US authorities had not objected to the transfer despite knowing about it beforehand. "As far as we know, they have not protested (against) our taking over the boat. We told (them) that before," he was quoted as saying.
A spokesman for Mr Low, through his attorney, issued a statement on Friday claiming that the seizure was "without US knowledge or consent, and in violation of both a US court order and a decision of the Indonesian court".
Lawyers for 1MDB have obtained a warrant of arrest against the ship from the Admiralty Court in Kuala Lumpur.
The Equanimity has become a major political trophy for the Dr Mahathir-led Pakatan Harapan administration symbolising the new government's determination to investigate the 1MDB debacle that turned public sentiment against former PM Najib Razak and his Barisan Nasional government.
The vessel is the single largest asset in the list of over US$1 billion worth of luxury items the DOJ alleges were acquired with funds siphoned from 1MDB. The DOJ has filed several civil suits since mid-2016 which claim over US$4.5 billion was misappropriated from the state fund.
Before the handover, the DOJ had secured a US court order giving it control of the yacht in Bali pending its sale. Monies from the sale would be then deposited in an escrow account until all civil cases in the US were decided.
