Xavier Radio Ug News 24 7
A Singapore High Court has paved the way for a $2.7 billion lawsuit against Standard Chartered Bank over its alleged role in the multibillion-dollar 1MDB fraud, liquidators announced on Monday.
The court dismissed the bank’s application to strike out the suit, marking what the liquidators described as “a significant legal victory” in ongoing efforts to recover stolen Malaysian public funds.
The case, filed in June, accuses Standard Chartered of enabling fraudulent transactions that contributed to more than $2.7 billion in losses at Malaysia’s sovereign wealth fund 1MDB over a decade ago.
“We are pleased that this application has been dismissed,” the liquidators said. “It enables us to continue recovering misappropriated assets that rightfully belong to the people of Malaysia.”
The bank said it disagrees with the ruling and will appeal, insisting the claims are “without merit.” In a second statement Tuesday, Standard Chartered accused the litigants—three 1MDB-linked companies now in liquidation—of being “shell companies that misappropriated funds.”
The bank said it reported suspicious activities and shut the companies’ accounts in early 2013, adding that it takes anti-financial-crime obligations seriously.
According to the liquidators, Standard Chartered allowed over 100 intrabank transfers between 2009 and 2013 that helped conceal stolen money flows. They claim red flags were overlooked, including transfers to the personal account of former Malaysian PM Najib Razak, now serving a six-year sentence for corruption tied to the 1MDB scandal.
The 1MDB saga, which U.S. investigators say saw $4.5 billion looted, has triggered probes in at least six countries—including Singapore, Switzerland, and the United States—implicating former politicians and global banking executives.
By February 2024, Malaysia said it had recovered about 29 billion ringgit ($7.01 billion) in stolen assets.
Singapore previously fined Standard Chartered S$5.2 million in 2016 for anti-money-laundering breaches linked to the scandal.
Uganda Retreat Fuels Exit Talk
The global pressure comes as Standard Chartered faces major upheaval in Uganda. In October, the bank stunned the market after selling its loss-making retail and wealth business to Absa Bank Uganda — a deal insiders say may be the first step toward a full exit from Uganda.
Sources claim the divestiture is part of Standard Chartered’s wider strategy to wind down operations in smaller African markets, although the bank has not publicly confirmed plans to leave.
The transaction effectively ends an era for one of Uganda’s oldest international banks, long seen as a premium, expatriate-focused institution.
Under the arrangement: All Stanchart retail customers move to Absa. All retail employees transfer to Absa. Stanchart pivots to corporate & investment banking only.
Stanchart’s Africa head Kariuki Ngari admitted the move is part of a global streamlining effort, prioritising business segments where the bank is “most differentiated.” Translation from banker-speak: retail wasn’t profitable.
Absa’s Wandera called the acquisition a “significant milestone” that brings in thousands of new customers and strengthens the bank’s retail dominance.
Industry watchers say Stanchart’s retail unit had been bleeding for years, squeezed by aggressive competitors such as: Centenary, Stanbic, Equity, and DFCU.
Absa is seen as the big winner — scooping up clients, staff, and infrastructure at what insiders quietly describe as a “sweet bargain.”
The deal now awaits regulatory approvals.
If cleared, Absa becomes the new home for hundreds of former Stanchart retail customers as the iconic British lender retreats to its high-end corporate bunker — or possibly out of Uganda altogether.
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