Michael Chua Khian Keng, sometime motor racing enthusiast based in Palmerston North, is alleged to have embezzled $26.5 million from Malaysia infrastructure company Mudajaya Corporation. The High Court lifted its freezing order over assets held in New Zealand by Mr Chua and family on grounds a Malaysian court order might prove unenforceable in New Zealand; Mr Chua was not told of the court case against him in Malaysia.
Mudajaya alleges Mr Chua defrauded it of RM72 million over the period 2012-2013, extracting secret profits by over-invoicing contractors. The High Court in New Zealand was told of extensive Mudajaya interviews with Mr Chua in early 2015, including veiled threats against his children and threats to hand him over to Malaysian police who ‘will beat you until crazy’. Mr Chua and his family departed Malaysia for New Zealand. A Malaysian court judgment for the amount allegedly stolen was entered against Mr Chua by default. Mudajaya investigators traced him to Palmerston North through online postings featuring his interest in motor racing.
Mudajaya obtained a New Zealand High Court order freezing Chua family property in New Zealand. Mr Chua had the freezing order overturned. Enforcement of overseas court judgments is governed by the Reciprocal Enforcement of Judgments Act. The overseas judgment must first be ‘registered’ in the New Zealand courts. Registration is refused where the defendant does not have formal or informal notice of the earlier overseas case and not given a chance to appear in the overseas court and challenge the case on its merits. Malaysian authorities gave notice of legal action against Mr Chua by substituted service; notice in local Malay newspapers. Justice Fitzgerald said evidence is required that Mr Chua knew legal action had been filed against him in Malaysia. He claims he was never told.
The court was told Mr Chua is currently under arrest in Malaysia.
Mudajaya Corporation Berhad v. Chua – High Court (21.06.19)
19.118