Former Damansara MP Tony Pua who raised the 1MDB issue 14 years ago will testify next week for the Malaysian sovereign wealth fund’s lawsuit against its former CEO and board director.
He will take the witness stand on Tuesday for the full court hearing of 1MDB’s civil action against Arul Kanda Kandasamy and Mohd Irwan Serigar Abdullah.
The fund is seeking compensation for billions of ringgit lost following its investment of US$1 billion in a joint venture with Petrosaudi International Limited (PSI) in 2009.
The plaintiff’s counsel Brendan Siva informed the Kuala Lumpur High Court today that Pua would be taking the witness stand on Sept 17.
In 2010, via a media statement, Pua (above) questioned 1MDB’s reported RM425 million net profit figure.
The then-Petaling Jaya MP further sought clarification if the sum was merely the result of massive asset injections from the Najib Abdul Razak administration at the time.
In the course of the suit hearing since Monday this week, UK-based financial fraud investigator Richard Templeman testified that fugitive businessperson Low Taek Jho (Jho Low) used his shell company to funnel US$2.4 million (RM5.5 million) from 1MDB into the accounts of US celebrities Pharrell Williams and Kim Kardashian.
However, Templeman conceded that Arul was not behind several allegedly suspicious transactions prior to him coming on board as CEO in January 2015.
Shahrol Azral Ibrahim Halmi held 1MDB’s CEO post from 2009 to 2013, with Mohd Hazem Abd Rahman taking over until early 2015. Arul then came on board as CEO until 2018.
Templeman also conceded that no documentary evidence showed that Irwan knew that US$700 million of 1MDB’s funds were diverted to Good Star International in 2009.
The offshore entity was set up by Low, who is still at large.
Templeman also agreed that there is no proof that Irwan was involved in several other suspicious transactions, such as the flow of 1MDB funds to overseas investment vehicle Brazen Sky around 2013.
Irwan, who is former Treasury secretary-general, became 1MDB’s chairperson in July 2016 and stepped down in May 2018.
Judicial commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan presides over the civil court proceedings.
In May 2021, 1MDB filed a civil suit against Arul and Irwan to seek compensation for its losses.
The fund claimed that the duo committed a breach of trust and conspiracy by misappropriating funds amounting to US$3.5 billion, which was allegedly paid to Aabar Investments and US$1.265 billion that was purportedly paid to International Petroleum Investment Company, on May 9, 2017.
Incidentally, 1MDB also has a separate ongoing civil action against former prime minister Najib Abdul Razak.
Najib is serving a six-year jail sentence over a criminal case involving RM42 million of funds from SRC International, a former subsidiary of 1MDB.
Counsel Brendan Navin Siva represented 1MDB.
Lawyers Sanjay Mohan and Lavinia Kumaraendran are acting for defendants Arul and Irwan respectively. – Malaysiakini