Former Malaysian prime minister’s wife, Rosmah Mansor, could face bankruptcy proceedings if she fails to pay RM67.46 million (approximately S$20.5 million) in damages to a Lebanese jewellery company over dozens of missing luxury jewellery items.
The warning came from Lebanese jeweller Global Royalty Trading SAL following a High Court ruling that ordered Rosmah to compensate the company for 43 pieces of jewellery that were allegedly never returned.
According to the company’s lawyer, the firm has been instructed to fully enforce the court judgment and pursue all available legal avenues to recover the money.
“If the debt cannot be recovered, bankruptcy proceedings remain an option,” the lawyer reportedly said after the court’s decision.
Court Orders Rosmah To Pay Within One Month
The High Court ruled that Rosmah must pay RM67,461,027.37 in damages within one month after finding that she failed to return 43 luxury jewellery pieces that had been supplied to her on a consignment basis.
Under a consignment arrangement, ownership of the jewellery remains with the supplier until the items are purchased. The court found that Rosmah neither paid for the jewellery nor returned it to the company.
The legal dispute centred on a collection of 44 high-end jewellery pieces worth approximately US$14.57 million (about RM68.3 million) that were allegedly delivered to Rosmah for viewing and selection in 2018.
Of the 44 items, only one diamond-studded emerald bracelet was eventually recovered and returned to the jeweller. The remaining 43 pieces have not been accounted for.
Bankruptcy Not Immediate
Despite the warning, the jewellery company indicated that it would not immediately seek bankruptcy action if Rosmah fails to make payment within the one-month deadline.
Instead, the company plans to first exhaust conventional debt recovery methods, including:
- Seizing and auctioning assets.
- Garnishing money owed by third parties.
- Summoning the debtor to declare assets and financial holdings.
Only after those enforcement efforts have failed would bankruptcy proceedings be considered.
The company’s lawyer stressed that the objective is to recover the full amount awarded by the court.
Rosmah’s Defence Rejected
During the case, Rosmah argued that the jewellery had been seized by Malaysian authorities during police raids linked to investigations into the 1Malaysia Development Berhad scandal in 2018.
However, the court dismissed her third-party claims against the Malaysian government and the Inspector-General of Police.
The judge ruled in favour of the jewellery company, determining that the items remained its property and should have been returned.
Appeal Planned
Rosmah’s legal team has announced plans to challenge the decision.
Her lawyer said an application would be filed to stay the enforcement of the judgment while an appeal is lodged with the appellate court.
The latest ruling adds to a growing list of legal challenges faced by Rosmah, who has remained at the centre of several high-profile court cases in Malaysia since the fall of her husband, former prime minister Najib Razak, and the subsequent investigations linked to the 1MDB scandal.
If the damages remain unpaid and recovery efforts prove unsuccessful, Rosmah could ultimately face bankruptcy proceedings, a move that would further complicate her ongoing legal and financial troubles.