KUALA LUMPUR – The high court yesterday was told that former 1Malaysia Development Bhd (1MDB) president and chief executive officer Arul Kanda Kandasamy was not involved in the alleged wrongful transactions of the company between 2009 and 2014.
United Kingdom-based financial fraud investigator Richard Templeman testified that Arul Kanda, who joined 1MDB in 2015, had no involvement in the transactions related to the first and second bond proceeds used by 1MDB in 2012 for purchasing power plants.
Datuk Shahrol Azral Ibrahim Halmi served as 1MDB CEO from 2009 to 2013, followed briefly by Mohd Hazem Abd Rahman, before Arul Kanda took over from early 2015 until mid-2018.
Arul Kanda’s counsel, Sanjay Mohan questioned Templeman about several specific transactions involving large sums of 1MDB funds, including a US$297,773,000 transfer to an entity owned by fugitive financier Low Taek Jho, also known as Jho Low, Aabar Seychelles, and a US$57 million transfer from Red Granite Capital to Alsen Chance, which occurred before 2014.
Templeman was also asked about a US$11.5 million transfer in 1MDB funds from Affinity, another entity owned by Jho Low, to Red Granite, and a US$1.095 billion transfer from an Aabar Investments PJS Ltd account to a Blackstone account.
When asked if the Aabar transactions happened between September and November 2014, Templeman responded, “Correct”. He also agreed that the transfers had nothing to do with Arul Kanda.
Sanjay also argued that some comments made by Templeman in his witness statement contained allegations against his client that were merely speculative and unsubstantiated. The witness disagreed with this assessment.
In May 2021, 1MDB filed a suit against former treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah and Arul Kanda, alleging breach of trust and conspiracy that resulted in losses of US$1.83 billion related to the company’s investment in 1MDB-Petrosaudi Ltd, which was later converted into the Brazen Sky Limited investment, purportedly recoverable from the Bridge Global Fund.
1MDB also alleged that both defendants committed breach of trust and conspiracy by misappropriating US$3.5 billion in company funds paid to Aabar Investments and US$1.265 billion paid to International Petroleum Investment Company on May 9, 2017.
The company is seeking US$6.59 billion in damages from both defendants for these violations and an additional RM2.9 million from Irwan related to the extension of his employment agreement.
The trial before judicial commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues today. – September 12, 2024