KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) former chief executive officer Arul Kanda Kandasamy is seeking more than RM56 million in damages over his wrongful termination from the sovereign wealth fund five years ago.
Arul claimed the former finance minister and the plaintiff (1MDB) did not have any legal basis to terminate his Employment Extension Agreement (EEA) in June 2018.
He claimed his termination was done at the behest of the former finance minister without carrying out the necessary due diligence and investigations.
He asserted that no investigations had concluded that he acted against the interest of the company in any manner between March to June 2018.
"The termination of the EEA was done to avoid having to make payment of the balance salary for May and June 2018 amounting to RM202,600 and the balance ex-gratia bonus of RM2.5 million.
"After the wrongful termination of the EEA, the plaintiff continued to wrongfully make false allegations against Arul in his role as its former director and president.
"The alleged losses of the plaintiff had already taken place prior to the defendant joining the plaintiff.
"1MDB's conduct amounts to an abuse of process and this was done deliberately despite its being aware that Arul had only joined the company on Jan 5, 2015," he claimed.
Arul said this in his counterclaim against a lawsuit filed by 1MDB to seek US$1.83 billion in damages from him and its former advisor Tan Sri Mohd Irwan Serigar.
Arul claimed 1MDB lodged a police report which resulted in the former being charged in what is described as the criminal 1MDB audit report tampering case.
"Arul was wrongly accused by the 1MDB of tampering with its audit report prepared by the auditor general in relation to its financial affairs.
"Arul had to repeatedly deal with the police and the Malaysian Anti-Corruption Commission (MACC) to address their queries, not just for the 1MDB audit report tampering but also for other investigation relating to 1DMB.
"However, on March 3, this year, the criminal charges against Arul were dismissed by the High Court and the appeal filed by the Attorney-General Chambers was dismissed on Sept 12," he claimed.
Arul claimed there was no evidence of any wrongdoing to justify his termination of his EEA.
"The acts of the plaintiff are without basis, evidence or any legal foundation and are designed to cause reputational harm and damage to the defendant.
"As a result, Arul has not been able to secure alternative employment, prevented from travelling abroad and suffered significant reputational loss and embarrassment," he claimed.
Arul claimed he suffered a loss of income amounting to RM15 million for a period of five years from June 2019 to 2023, until the criminal charges were dismissed.
He also claimed for a loss of income from 2023 to 2036 (aged 60) amounting to RM39 million.
Arul is seeking a special damage in the sum of RM54 million and RM2.5 million being the bonus payable pursuant to the EEA.
He is also seeking RM202,600 for loss of salary as well as exemplary and aggravated damages.
In May 2021, 1MDB filed a suit against Arul Kanda and Mohd Irwan over an alleged breach of trust and conspiracy, causing 1MDB to suffer losses amounting to US$1.8 billion, in relation to its investment in 1MDB-Petrosaudi Ltd.
1MDB also claimed that the two defendants committed a breach of trust and conspiracy by misappropriating 1MDB money, amounting to US3.5 billion, paid to Aabar Investment and US$1.265 billion, paid to International Petrolium Investment Company (IPIC), on May 9, 2017.
1MDB alleged that Mohd Irwan also conspired with Arul Kanda to cause the company to implement the EEA, and made a substantial payment of RM2,905,200 to Arul Kanda as per the agreement, regardless of 1MDB's interests, causing the company to suffer losses and damage.
In this regard, 1MDB, among others, demanded that the two defendants pay US$6.59 billion for the breach and an additional RM2.9 million from Mohd Irwan in relation to the EEA.