The Kuala Lumpur High Court was told that the former chief executive officer of 1MDB Arul Kanda Kandasamy was absolutely uncertain as to what the value of the 1MDB’s “investments” were or whether they even existed in the first place.
Former Damansara MP Tony Pua said this while testifying as the plaintiff’s second witness in the US$6.59 billion (RM28.1 billion) civil lawsuit filed by 1MDB against Arul and former Treasury secretary-general Mohd Irwan Serigar Abdullah.
Pua, 52, who was appointed as political secretary to then finance minister Lim Guan Eng in 2018, said he can say this for a fact because he attended the meeting with 1MDB representatives to determine the financial status of the sovereign wealth fund.
“After the 14th general election, the new minister (Lim) had a meeting on May 22, 2018, with representatives of 1MDB to determine the financial status of 1MDB. I also attended this meeting.
“When asked about 1MDB’s investments, Arul claimed that all financial matters were handled strictly by the chief financial officer of 1MDB Azmi Tahir and he was absolutely uncertain as to what the value of these ‘investments’ were or whether they even existed in the first place,” said Pua.
He said Lim then went on to state in a media release about the outcome of the meeting.
The witness further said that, in June 2018, 1MDB terminated the employment of Arul with immediate effect on the grounds of breach of contract and fiduciary duty as CEO of 1MDB. He held the position from 2015 to 2018.
Arul’s lawyer Sanjay Mohan then queried Pua if he had asked the 1MDB board of directors to be investigated, to which the latter replied, “I believe so.”
In May 2021, 1MDB filed a lawsuit against Irwan and Arul over an alleged breach of trust and conspiracy that resulted in US$1.83 billion in losses related to the company’s investment in 1MDB-Petrosaudi Ltd, which was later converted into the Brazen Sky Limited investment, said to be 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.
1MDB 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 the employment agreement.
The trial before judicial commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan continues tomorrow.